The costs of inputs supplied to the firm by the owners of the firm are
A) fixed costs.
B) explicit costs.
C) variable costs.
D) implicit costs.
E) economic costs.

Question

Quizplus · Accepted Answer

Inputs supplied by the owners of the firm are considered implicit costs, which are not actual out-of-pocket expenses but instead the opportunity cost of using resources owned by the firm's owners.

The Costs of Inputs Supplied to the Firm by the Owners