Which of the following is an explicit cost to a business firm?
A) The rental value of property owned by the firm
B) The cost of the owner's time
C) The cost of borrowing an amount equal to the value of the capital assets owned by the firm
D) None of the above is an explicit cost.

Question

Quizplus · Accepted Answer

Explicit costs are direct, out-of-pocket payments for expenses like wages, rent, and materials. The options listed are implicit costs, which are opportunity costs not involving direct payment.

Which of the Following Is an Explicit Cost to a Business