Which of the following would be categorized as an implicit cost? (i) forgone investment opportunities
(ii) wages of workers
(iii) raw materials costs

Question

Which of the following would be categorized as an implicit cost? (i)	forgone investment opportunities
(ii)	wages of workers
(iii)	raw materials costs

Quizplus · Accepted Answer

Forgone investment opportunities are categorized as implicit costs because they represent the revenue that the business could have earned if it had chosen a different investment instead of the one it did. Wages of workers and raw materials costs are explicit costs because they represent actual out-of-pocket expenses incurred by the business.

Which of the Following Would Be Categorized as an Implicit