A cost incurred in the production of a good or service and for which the firm does not need to make a direct monetary payment,is referred to as ________ cost.
A) a minimized
B) a maximized
C) an explicit
D) an implicit
E) an invisible

Question

Quizplus · Accepted Answer

Implicit costs are costs that are not explicitly stated or involve a direct monetary payment. For example, the opportunity cost of using a firm's own resources (such as time and labor) instead of hiring new employees is an implicit cost.

A Cost Incurred in the Production of a Good or Service