Which of the following is an implicit cost of production?
A)The loss in the value of capital equipment due to wear and tear
B)The salary you pay yourself for running your business
C)The utility bill paid to water, electricity, and natural gas companies
D)The interest you pay your mother for the money she loaned you to start your business

Question

Quizplus · Accepted Answer

Implicit costs are non-monetary opportunity costs. The loss in the value of capital equipment due to wear and tear is an implicit cost because it represents the opportunity cost of using the equipment, as it depreciates over time.

Which of the Following Is an Implicit Cost of Production