Which of the following are implicit costs for a typical firm?
A)Opportunity costs of capital owned and used by the firm
B)The cost of labour hired by the firm
C)Utilities cost
D)A business licensing fee

Question

Quizplus · Accepted Answer

Implicit costs are the opportunity costs of resources owned by the firm (such as capital) and used in production, rather than monetary expenses that the firm pays out (like labour, utilities, and licensing fees). Therefore, only option A is an implicit cost.

Which of the Following Are Implicit Costs for a Typical