Which of the following is an example of an implicit cost?

Question

Quizplus · Accepted Answer

An implicit cost is the opportunity cost of forgoing the next best alternative. In this case, the owner of the business has given up the salary they could have earned elsewhere to run their own business. This is the only option that represents an opportunity cost in terms of forgone wages. Option (ii) represents an explicit cost, as it involves a direct cash outlay, and option (iii) is not a cost, but a revenue earned.

Which of the Following Is an Example of an Implicit