A difference between explicit and implicit costs is that
A)explicit costs must be greater than implicit costs.
B)explicit costs do not require a direct monetary outlay by the firm, whereas implicit costs do.
C)implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do.
D)implicit costs must be greater than explicit costs.

Question

Quizplus · Accepted Answer

Implicit costs represent the opportunity costs of using resources that the firm already owns, and thus do not require a direct monetary outlay, whereas explicit costs involve direct payment of money.

A Difference Between Explicit and Implicit Costs Is That