If a firm uses factor inputs that are personally owned by the firm's owner,then economists refer to the opportunity cost of these inputs as
A)direct production costs.
B)accounting costs.
C)sunk costs.
D)implicit costs.
E)inverted costs.

Question

Quizplus · Accepted Answer

When a firm uses factor inputs that are personally owned by the firm's owner, economists refer to the opportunity cost of these inputs as implicit costs. Implicit costs are the opportunity costs of resources owned by the firm that are not purchased in the market. They are not reflected in accounting records but are important for economic decision-making.

If a Firm Uses Factor Inputs That Are Personally Owned