An example of an explicit cost of production is:
A) the cost of foregone labor earnings for an entrepreneur.
B) the cost of flour for a baker.
C) the foregone rent that could have been earned if land owned by a firm was not used as its parking lot.
D) provided by none of the above.

Question

Quizplus · Accepted Answer

The cost of flour for a baker is a direct and explicit cost of production as it can be easily quantified and recorded in accounting records.

An Example of an Explicit Cost of Production Is