Land and a building owned by a firm has an explicit cost of zero, but its implicit cost is not zero.

Name: Land and a building owned by a firm has an explicit cost of zero, but its implicit cost is not zero.
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Question

Quizplus · Accepted Answer

The implicit cost refers to the opportunity cost of using resources owned by the firm for its own use rather than renting them out or selling them, which means the firm foregoes potential income from these assets.

Land and a Building Owned by a Firm Has an Explicit