An example of the implicit cost of producing a new product line is the interest that could have been earned if the funds had been placed in the bank instead.

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources that a company already owns for one purpose instead of another, including the foregone income from alternative uses of those resources, such as the interest that could have been earned on funds if they were not invested in the new product line.

An Example of the Implicit Cost of Producing a New