Which of the following is an implicit cost to a business?
A) Normal profit.
B) Economic profit.
C) Payments for raw materials.
D) Employee fringe benefit packages.

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources that a company already owns. Normal profit is an implicit cost because it represents the minimum amount of profit needed for a company to remain competitive, essentially the opportunity cost of capital invested in the business.

Which of the Following Is an Implicit Cost to a Business