The amount of money that an orchardist could have earned if he had planted orange trees rather than apple trees is termed:
A)explicit cost
B)accounting cost
C)implicit cost
D)total sales

Question

Quizplus · Accepted Answer

The amount of money that an orchardist could have earned if he had planted orange trees rather than apple trees is an opportunity cost, which falls under implicit costs. Implicit costs are the opportunity costs of using resources already owned by the firm or incurred from owner’s own personal assets, while explicit costs are the out-of-pocket costs, such as wages, rent, and materials. Accounting costs are the sum of explicit costs, while total sales just represents the total revenue earned by the business.

The Amount of Money That an Orchardist Could Have Earned