________ are costs that do not require a monetary payment.
A) Implicit costs
B) Explicit costs
C) Accounting costs
D) All opportunity costs

Question

Quizplus · Accepted Answer

Implicit costs refer to the opportunity cost of using a resource for one purpose over its next best alternative. These costs do not require a monetary payment and are often overlooked in decision-making. Explicit costs, on the other hand, are actual monetary payments made for resources or inputs used in production. Accounting costs are the sum of explicit costs and depreciation charges, while all opportunity costs refer to the value of the foregone next best alternative.

________ Are Costs That Do Not Require a Monetary Payment