Implicit costs are costs that:
A)require a firm to spend money.
B)represent forgone opportunities.
C)do not depend on the quantity of output produced.
D)depend on the quantity of output produced.

Question

Quizplus · Accepted Answer

Implicit costs are costs that represent forgone opportunities, such as the income a business owner forgoes by investing their own money in their company instead of earning interest in a savings account. These costs do not involve a direct payment of money but are important for calculating economic profit.

Implicit Costs Are Costs That