The total costs of a firm consist of
A) implicit costs only
B) explicit costs only
C) implicit costs plus explicit costs
D) implicit costs plus economic profit

Question

Quizplus · Accepted Answer

The total costs of a firm include both implicit and explicit costs. Implicit costs are the opportunity costs of using resources that the firm already owns, while explicit costs are the direct, out-of-pocket payments for resources to outside suppliers of goods and services.

The Total Costs of a Firm Consist of