Which of the following is an implicit cost?
A) Insurance payments
B) Property taxes
C) Interest payments on a loan
D) None of the above is an implicit cost.

Question

Quizplus · Accepted Answer

Implicit costs are costs that are not explicitly paid to a third party. Interest payments on a loan are an explicit cost, as they are paid to a lender. Insurance payments and property taxes are also explicit costs, as they are paid to an insurance company or government agency.

Which of the Following Is an Implicit Cost