Which of the following is an implicit cost?
A)Jones buys $100 worth of supplies from Smith.
B)Brown pays the bill he received in the mail.
C)Smith, who could work for someone else, works for himself.
D)Williamson pays his income taxes on April 15.
E)a, c, and d

Question

Quizplus · Accepted Answer

Implicit costs are costs that represent the opportunity costs of using resources that the firm already owns. Choice C, where Smith could work for someone else but chooses to work for himself, represents an implicit cost because it's the opportunity cost of not earning a salary elsewhere.

Which of the Following Is an Implicit Cost