Which of the following are implicit costs for a typical firm?
A)insurance costs
B)electricity costs
C)opportunity costs of capital owned and used by the firm
D)cost of labor hired by the firm
E)the cost of raw materials

Question

Quizplus · Accepted Answer

Implicit costs are those costs that are not directly incurred by the firm but are still part of the firm's opportunity costs. The cost of capital owned and used by the firm is an example of an implicit cost. Insurance costs, electricity costs, labor costs, and raw materials costs are all examples of explicit costs - costs that are actually incurred by the firm.

Which of the Following Are Implicit Costs for a Typical