Which of the following items is most likely to be an implicit cost of production?
A) the "competitive rate" salary the owner of the business pays herself for services provided
B) property taxes on a building owned by the firm
C) rental payments for a building utilized by the company and rented from another party
D) the interest income foregone on the equity capital invested by owners

Question

Quizplus · Accepted Answer

Implicit costs are non-monetary opportunity costs, such as the foregone interest income on the owner's equity capital invested in the business.

Which of the Following Items Is Most Likely to Be