To continue a business, the owner must earn enough to pay his or her:
A) explicit costs.
B) implicit costs.
C) explicit and implicit costs.
D) explicit, implicit and external costs.

Question

Quizplus · Accepted Answer

To sustain a business, the owner must cover both explicit costs (direct, out-of-pocket expenses) and implicit costs (opportunity costs of using resources owned by the business). External costs are not directly borne by the business owner for operations.

To Continue a Business, the Owner Must Earn Enough to Pay