Explicit costs
A)Include only payments to entrepreneurship.
B)Are the sum of actual monetary payments made for the use of resources.
C)Include the market value of all resources used to produce a good.
D)Are the total opportunity costs of resources used to produce a good.

Question

Quizplus · Accepted Answer

Explicit costs are the actual monetary payments made for the use of resources, such as wages paid to employees, rent for a building, and the cost of raw materials. They do not include the opportunity cost of using these resources, which is known as implicit cost. Therefore, the best choice for defining explicit costs is B - the sum of actual monetary payments made for the use of resources.

Explicit Costs