Explicit costs
A)do not require an outlay of money by the firm.
B)enter into the accountant's measurement of a firm's profit.
C)enter into the economist's measurement of a firm's profit.
D)Both b and c are correct.

Question

Quizplus · Accepted Answer

Explicit costs are the out-of-pocket expenses that a firm incurs in order to obtain resources for its production process. These costs are counted in both the accountant's and economist's measurement of a firm's profit. Therefore, both option B and C are correct.

Explicit Costs