Which of the following is an example of an implicit cost of production?
A) the income an entrepreneur could have earned working for someone else
B) the cost of labour for a farmer who tills his fields
C) the income of a labourer in a factory that assembles DVD players
D) the cost of raw materials used to produce bread in a bakery

Question

Quizplus · Accepted Answer

An implicit cost is a non-monetary opportunity cost which is not recorded in the accounting books. The income an entrepreneur could have earned working for someone else is an example of an implicit cost of production.

Which of the Following Is an Example of an Implicit