If a firm uses factor inputs that are personally owned by the firm's owner,then economists refer to the opportunity cost of these inputs as
A)implicit costs.
B)inverted costs.
C)accounting costs.
D)direct production costs.
E)sunk costs.

Question

Quizplus · Accepted Answer

When a firm uses factor inputs that are personally owned by the firm's owner, the opportunity cost of these inputs are referred to as implicit costs. Implicit costs are the opportunity costs of using resources that are already owned by the firm or its owners and therefore do not involve any direct monetary costs.

If a Firm Uses Factor Inputs That Are Personally Owned