Which of the following are correct statements about implicit and explicit costs?
i.Normal profit is an implicit cost.
ii.Economic depreciation is an explicit cost.
iii.Wages are an explicit cost.
A) ii and iii
B) i and iii
C) iii only
D) i, ii, and iii
E) i only

Question

Quizplus · Accepted Answer

i. Normal profit is considered an implicit cost because it represents the opportunity cost of the capital employed by the owners, not a direct outlay of cash.iii. Wages are explicit costs as they represent direct payments to employees for their labor.

Which of the Following Are Correct Statements About Implicit and Explicit