All of the following are examples of explicit cost a firm might incur except

Question

Quizplus · Accepted Answer

The rental value of the warehouse space the company owns and uses for itself is not an explicit cost, as it is an opportunity cost (the firm could have rented the space out to another company for a rental income). Explicit costs are actual out-of-pocket expenses that a firm incurs, such as wages, taxes, rent paid to a landlord, etc. Choices A, B, and D are all explicit costs.

All of the Following Are Examples of Explicit Cost a Firm