Which of the following statements is true?
A)Opportunity cost = explicit cost - implicit cost.
B)Total cost = fixed cost + implicit cost.
C)Total cost = fixed cost + variable cost.
D)Variable cost = wages + salaries + benefits.

Question

Quizplus · Accepted Answer

Total cost includes both fixed and variable costs. Implicit costs refer to opportunity costs (foregone alternatives), not actual monetary expenses, so they are not included in total cost calculations. Wages, salaries, and benefits are examples of variable costs, but they do not represent all variable costs.

Which of the Following Statements Is True