Another term for implicit cost is
A)Out-of-pocket costs
B)Explicit costs
C)Opportunity cost
D)Total cost
E)Marginal cost

Question

Quizplus · Accepted Answer

Implicit cost refers to the opportunity cost of resources used in a given activity, which represents the foregone earnings that could have been earned from the next best alternative use of those resources. Therefore, another term for implicit cost would be opportunity cost. A is incorrect because out-of-pocket costs represent explicit costs, which are the actual direct expenses incurred by a company to produce goods or services. B and D are incorrect because explicit costs and total costs refer to the monetary expenses a company incurs, while implicit costs are non-monetary opportunity costs. E is incorrect because marginal cost refers to the cost of producing one additional unit of a good or service, and does not consider opportunity costs.

Another Term for Implicit Cost Is