Costs that do not require a monetary outlay but instead reflect the dollar value of benefits forgone are:
A)outlay costs.
B)accounting profits.
C)implicit opportunity costs.
D)economic profits.

Question

Quizplus · Accepted Answer

Implicit opportunity costs refer to the benefits forgone from the next best alternative when making a decision. These costs do not require a monetary outlay and are therefore not included in accounting profits. Economic profits take into account both implicit and explicit costs, while outlay costs refer to actual monetary expenses. Therefore, the best choice is C, implicit opportunity costs.

Costs That Do Not Require a Monetary Outlay but Instead