If an input is owned and used by a firm, then its
A) explicit cost is zero.
B) implicit cost is zero.
C) opportunity cost is zero.
D) economic cost is zero.

Name: If an input is owned and used by a firm, then its A) explicit cost is zero. B) implicit cost is zero. C) opportunity cost is zero. D) economic cost is zero.
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Question

Quizplus · Accepted Answer

When a firm owns and uses an input, it incurs no explicit cost for it, as explicit costs involve direct monetary payment to outsiders.

If an Input Is Owned and Used by a Firm