In reference to table 22.1,the $600 paid in property taxes counts as
A)An implicit cost.
B)A normal cost.
C)A variable cost.
D)An explicit cost.

Name: In reference to table 22.1,the $600 paid in property taxes counts as A)An implicit cost. B)A normal cost. C)A variable cost. D)An explicit cost.
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Question

Quizplus · Accepted Answer

The $600 paid in property taxes is a direct, out-of-pocket expense that the firm must pay in order to maintain its property. This makes it an explicit cost.

In Reference to Table 22