Which of the following would be an implicit cost for a firm? The cost
A)of worker wages and salaries for the firm.
B)paid for leasing a building for the firm.
C)paid for production supplies for the firm.
D)of wages forgone by the owner of the firm.

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources that the firm already owns. Choice D, the wages forgone by the owner of the firm, represents an opportunity cost because it's the income the owner could have earned if they worked elsewhere instead of running their own firm. Choices A, B, and C are examples of explicit costs, which involve direct monetary payments.

Which of the Following Would Be an Implicit Cost for a Firm