Which of the following are implicit costs for a typical firm?
A)the cost of labor
B)the opportunity cost of capital owned and used by the firm
C)the cost of energy used in production
D)a business licensing fee

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs incurred by a firm by using its resources for a specific purpose instead of the next best alternative. The opportunity cost of capital owned and used by the firm is an implicit cost because the firm could have earned a return on that capital if it were used elsewhere.

Answer: D 
 Business licensing fee is an explicit cost. Explicit costs are those for which a firm pays directly, such as wages, rent, and utilities.

Which of the Following Are Implicit Costs for a Typical