The implicit opportunity cost of capital is:
A)the cost of capital the firm might have used but didn't need to.
B)depreciation.
C)the opportunity cost of the capital used by a business.
D)lost output due to lost time from inefficient workers.

Question

Quizplus · Accepted Answer

The implicit opportunity cost of capital refers to the opportunity cost of the capital used by a business. It is the return a firm could have earned if they had invested the capital in another project with similar risk.

The Implicit Opportunity Cost of Capital Is