Which of the following statements is true?
A)An explicit cost is an actual cost; an implicit cost is a theoretical cost.
B)Economic costs include both explicit costs and implicit costs.
C)An explicit cost is more important, dollar for dollar, than an implicit cost.
D)Explicit costs are accounting costs, not economic costs; implicit costs are economic costs, not accounting costs.

Question

Quizplus · Accepted Answer

Economic costs include both explicit costs (such as payments for inputs) and implicit costs (such as opportunity costs of forgone alternatives). Therefore, statement B is true. Statements A, C, and D are all false.

Which of the Following Statements Is True