Which of the following is an example of an implicit cost?
A) Forgone wages that the owner could have earned in another position.
B) Forgone lease payments from a building owned by the firm and used in production.
C) Forgone interest on funds the owner could have invested rather than putting them in the business.
D) All of the above are implicit costs.

Question

Quizplus · Accepted Answer

Implicit costs are those costs that are not directly paid out but represent opportunity costs, such as forgone wages, lease payments, or interest. All the options listed are examples of implicit costs.

Which of the Following Is an Example of an Implicit