Which of the following is an explicit cost in Jim's business venture?
A) The interest Jim does not earn because he invested his savings in his business.
B) Jim's normal profit.
C) The salary Jim could have earned at another job.
D) The wages Jim pays his workers.
E) Answers A, B and D are correct.

Question

Quizplus · Accepted Answer

The explicit cost is a monetary payment made by Jim to his workers. The interest Jim doesn't earn (option A) is an opportunity cost, Jim's normal profit (option B) is an implicit cost, and the salary Jim could have earned at another job (option C) is also an opportunity cost. So, only option D is an explicit cost.

Which of the Following Is an Explicit Cost in Jim's