To the economist, total cost includes
A)explicit and implicit costs.
B)neither implicit nor explicit costs.
C)implicit, but not explicit, costs.
D)explicit, but not implicit, costs.

Question

Quizplus · Accepted Answer

Total cost in economics includes both explicit and implicit costs. Explicit costs are direct, out-of-pocket payments, while implicit costs represent the opportunity costs of using resources owned by the firm for its current purposes rather than the next-best alternative use.

To the Economist, Total Cost Includes