Which of the following is an implicit cost?
i.wages paid to workers
ii.the normal profit
iii.the electric bill
A) i only
B) ii only
C) i and ii
D) ii and iii
E) Neither i, ii, nor iii

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of using resources that a firm already owns. Normal profit is an example of an implicit cost, as it represents the opportunity cost of the capital employed by the firm's owners. Wages and electric bills are explicit costs, not implicit.

Which of the Following Is an Implicit Cost