Which of the following is an example of an implicit cost that a firm might incur?

Question

Quizplus · Accepted Answer

Implicit costs refer to opportunity costs that are not reflected in the firm's accounting statements, and owning a building (rather than renting it out to earn rental income) is an example of an implicit cost. Option A refers to explicit costs, option B to taxes paid to the government, which are not a cost incurred by the firm in production, and option D refers to revenue, which is not a cost.

Which of the Following Is an Example of an Implicit