Which of the following is an example of an implicit cost?
(i)the owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm
(ii)interest paid on the firm's debt
(iii)rent paid by the firm to lease office space
A)(ii) and (iii) only
B)(i) and (iii) only
C)(i) only
D)(iii) only

Question

Quizplus · Accepted Answer

An implicit cost is a non-monetary opportunity cost, such as the owner forgoing a salary by not working elsewhere.

Which of the Following Is an Example of an Implicit