Which of the following is most likely to be an implicit cost of production?
A) property taxes on a building owned by the firm
B) transportation costs paid to a trucking supplier
C) rental payments for a building utilized by the company and rented from another party
D) interest income foregone on funds invested in the firm by the owners

Question

Quizplus · Accepted Answer

Implicit costs refer to the opportunity costs of using resources owned by the firm for its own production, such as the foregone interest income on funds invested by the owners.

Which of the Following Is Most Likely to Be an Implicit