If you were in the donut-making business, which of the following would most likely not be an explicit cost?
A) salaries
B) sales taxes
C) utilities, such as gas and electricity
D) insurance
E) the time you put into running the business

Question

Quizplus · Accepted Answer

Explicit costs are direct payments made to others in the course of running a business, such as salaries, taxes, utilities, and insurance. The time you put into running the business is considered an implicit cost, not an explicit one, because it represents the opportunity cost of what you could be doing with your time instead.

If You Were in the Donut-Making Business, Which of the Following