The amount of money a firm pays to lease a building it uses for office space is called:
A)the full opportunity cost of production.
B)an explicit cost.
C)a real cost of production.
D)an implicit cost.

Question

Quizplus · Accepted Answer

The amount of money a firm pays to lease a building for office space is an explicit cost. Explicit costs are direct payments made by the firm for the factors of production, such as rent, wages, and utilities.

The Amount of Money a Firm Pays to Lease a Building