Darryl runs a ranch in Jackson,Wyoming.The interest on the debt he incurred to buy his ranch totals $3,000 per year.For Darryl,the interest is
A) an implicit cost.
B) an explicit cost.
C) his normal cost.
D) his normal profit.
E) part of his economic profit.

Question

Quizplus · Accepted Answer

The interest on the debt is a direct, out-of-pocket cost that Darryl incurs and is therefore an explicit cost.

Darryl Runs a Ranch in Jackson,Wyoming