Which of the following is an example of an implicit cost a firm might incur?

Question

Quizplus · Accepted Answer

An implicit cost is an opportunity cost, meaning it is the cost of forgoing the next best alternative. In this case, the opportunity cost to investors of the funds invested in the firm is an implicit cost because the investors could have invested their funds in other opportunities and earned a return. Choices A, B, and D are all explicit costs because they involve direct monetary payments or expenses incurred by the firm.

Which of the Following Is an Example of an Implicit