Implicit costs
A)Include only payments to workers and lenders.
B)Represent actual monetary payments made for resources used to produce a good such as oil.
C)Are the costs to produce a good or service for which no direct payment is made.

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of resources already owned by the firm and not purchased in the market. These costs do not involve any actual monetary payments; instead, they reflect the value of the foregone alternatives. Examples of implicit costs include the opportunity cost of using a firm's own capital instead of investing it elsewhere, the opportunity cost of a firm owner's time spent running the business instead of working for another company, and the opportunity cost of using a building or equipment that the firm already owns instead of renting them out to others.

Implicit Costs