What would be an example of an explicit cost of production
A)the cost of forgone labour earnings for an entrepreneur
B)the cost of the lost opportunity to invest in other capital markets when the money is invested in one's business
C)the cost of gas for a long haul truck driver
D)the cost of training programs postponed indefinitely

Question

Quizplus · Accepted Answer

The cost of gas for a long haul truck driver is an explicit cost of production as it is a direct expenditure incurred by the business for the transportation of goods. The other options involve opportunity costs, which are not explicit costs.

What Would Be an Example of an Explicit Cost of Production