Charges that are paid for factors of production are called implicit costs.

Name: Charges that are paid for factors of production are called implicit costs.
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Charges that are paid for factors of production are explicit costs, not implicit costs. Implicit costs refer to the opportunity cost of using resources owned by the firm, such as the owner's time or the use of equipment that could be rented out to others.

Charges That Are Paid for Factors of Production Are Called