Remember-from the Added Perspective-Elaine Rodier who quit her job to go into business making appetizers? Which of the following is an implicit cost for her business?
A) cost of rent
B) cost of her own labor
C) cost of hiring workers
D) cost of insurance
E) cost of raw materials

Question

Quizplus · Accepted Answer

Implicit costs are those that do not require an outlay of money by the firm and often represent opportunity costs. In this case, the cost of Elaine Rodier's own labor is an implicit cost because it represents the income she is foregoing by not working at her previous job.

Remember-From the Added Perspective-Elaine Rodier Who Quit Her Job to Go