In defining economic costs,economists emphasize
A)Explicit and implicit costs while accountants recognize only implicit costs.
B)Explicit and implicit costs while accountants recognize only explicit costs.
C)Only explicit costs while accountants recognize only implicit costs.

Question

Quizplus · Accepted Answer

Economists emphasize both explicit and implicit costs in defining economic costs, while accountants only recognize explicit costs. Explicit costs are the monetary payments made for resources used in production, such as wages and rent, while implicit costs are the opportunity costs of using resources owned by the firm, such as the owner's time and capital invested in the business.

In Defining Economic Costs,economists Emphasize