Which of the following is an example of an implicit cost of production?
A) the opportunity cost of space in your home that is used for a home office
B) the wage that high school students could have earned if they worked somewhere else
C) the wages paid to high school students who work in a fast-food restaurant
D) the cost of leather used in manufacturing furniture

Question

Quizplus · Accepted Answer

An implicit cost is an opportunity cost of resources already owned by the firm and do not involve direct monetary payment. In this case, the opportunity cost of using a space in your home for a home office is an implicit cost.

Which of the Following Is an Example of an Implicit