When making decisions, it is important to consider only those costs that actually involve an explicit money outlay.This is because such costs actually have to be paid, whereas implicit costs are only notional or hypothetical.

Question

Quizplus · Accepted Answer

This statement is false. Implicit costs, such as the opportunity cost of using your time and resources for one option versus another, should also be considered when making decisions. These costs may not involve an explicit money outlay, but they still represent a real cost to the decision maker.

When Making Decisions, It Is Important to Consider Only Those