An example of an implicit cost of production is:

Question

An example of an implicit cost of production is:​

Quizplus · Accepted Answer

Implicit costs are opportunity costs, which are the benefits an individual must forgo when he or she chooses one alternative over another. The income that an entrepreneur could have earned if they had chosen to work for someone else is an example of an implicit cost because it represents the forgone benefits of the next best alternative. Choices A, B, D, and E are all explicit costs, which are incurred by a firm and require the payment of money or other resources.

An Example of an Implicit Cost of Production Is:​

An Example of an Implicit Cost of Production Is: