A nonmonetary opportunity cost is called a(n)________, while a cost that involves spending money is called an ________.

Question

Quizplus · Accepted Answer

A nonmonetary opportunity cost is an implicit cost, whereas a cost that involves spending money is an explicit cost. Therefore, option B is the correct answer. A is incorrect because an accounting cost refers to any monetary cost involved in running a business, while an explicit cost is a type of accounting cost that includes expenses that require an outlay of money. C is incorrect because accounting profit is the difference between a firm's revenue and its explicit costs, while economic profit is the difference between a firm's revenue and its total costs (which include both explicit and implicit costs). D is incorrect because the normal rate of return is a type of implicit cost that represents the opportunity cost of the resources that investors have invested in the firm, and an asset is something owned by a company that has value and can be used to generate revenue.

A Nonmonetary Opportunity Cost Is Called A(n)________, While a Cost