Which of the following is most likely to be an implicit cost of production?

Question

Quizplus · Accepted Answer

The rental income foregone because the business owns its building is an example of an implicit cost because it represents an opportunity cost - the business could have earned rental income if it had rented out the building instead of using it for its own operations. A is not an implicit cost because it is a direct cost - the owner is paying herself a salary for services provided. B and D are also not implicit costs because they are explicit costs - they involve actual payments of money, such as property taxes and interest on loans.

Which of the Following Is Most Likely to Be an Implicit