You own a small deli that sells sandwiches,salads,and soup.Which factor is an implicit cost of the business?

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An implicit cost is a cost that is not a direct monetary expense but rather an opportunity cost, i.e., the value of the next best alternative. In this case, the job offer the business owner did not accept at a local catering service is an example of an implicit cost because it represents the foregone wages and benefits that the owner could have earned by pursuing that opportunity instead of running the deli. A, C, and D are all examples of explicit costs because they involve direct monetary expenses for wages, supplies, and utilities, respectively.

You Own a Small Deli That Sells Sandwiches,salads,and Soup