A firm's opportunity costs of production are equal to its
A)explicit costs only.
B)implicit costs only.
C)explicit costs + implicit costs.
D)explicit costs + implicit costs + total revenue.

Question

Quizplus · Accepted Answer

Opportunity costs of production include both explicit costs (direct, out-of-pocket payments) and implicit costs (the value of resources used in production for which no direct payment is made).

A Firm's Opportunity Costs of Production Are Equal to Its