_________is an example of an implicit cost.

Question

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An implicit cost is a cost of using a resource that has already been purchased and cannot be recovered. The wear and tear on a firm's machinery is an example of an implicit cost because it represents the loss of the value of the machinery over time, even though the firm does not have to pay for it on a recurring basis like an explicit cost such as an electric bill or transportation cost. The salary paid to an employee is an explicit cost, and a firm's electric bill and cost to transport goods are also explicit costs.

_________Is an Example of an Implicit Cost