Which of the following is an implicit cost? i. Wages paid to workers
Ii) The normal profit
Iii) The electricity bill
A) i only
B) ii only
C) i and ii
D) ii and iii
E) Neither i, ii nor iii

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources that a company already owns. Normal profit is considered an implicit cost because it represents the minimum amount of earnings needed to justify keeping resources in their current use instead of allocating them elsewhere. Wages and electricity bills are explicit costs, not implicit.

Which of the Following Is an Implicit Cost? I