Costs that are included in the economic concept of cost but that are NOT explicit costs are:
A)outlay costs.
B)accounting profits.
C)implicit costs.
D)economic profits.

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources that a firm already owns (such as the time of the owner or the use of their personal property), which do not require any outlay of money. Implicit costs are therefore not reflected in accounting statements but are included in the economic concept of cost. Outlay costs and accounting profits are both explicit costs, while economic profits take both explicit and implicit costs into account.

Costs That Are Included in the Economic Concept of Cost