Which of the following are correct statements about implicit and explicit costs? i. Normal profit is an implicit cost.
Ii) Economic depreciation is an explicit cost.
Iii) Wages are an explicit cost.
A) i and iii
B) ii and iii
C) i, ii and iii
D) iii only
E) i only

Question

Quizplus · Accepted Answer

i) Normal profit is an implicit cost as it is the minimum level of profit necessary for a business to remain in operation and is included in the opportunity cost of the owner's time and financial investment.
iii) Wages paid to employees are an explicit cost as they involve a direct monetary payment.

Which of the Following Are Correct Statements About Implicit and Explicit