Expenses associated with factors of production may be:

Question

Quizplus · Accepted Answer

Expenses associated with factors of production could be implicit costs such as the opportunity cost of using owner's own resources. It could also be explicit costs such as labor, materials, rent, etc. Therefore, both implicit costs and explicit costs are associated with the factors of production. Additionally, since opportunity cost is a part of implicit cost, option B is also covered in option D.

Expenses Associated with Factors of Production May Be