Economic costs:
A)are the same as accounting costs.
B)are the same as implicit costs.
C)are the same as opportunity costs.
D)are the same as the sum of all past explicit costs.

Question

Quizplus · Accepted Answer

Economic costs are the opportunity costs of all resources used to produce a good or service, including both explicit (monetary) costs and implicit (non-monetary) costs. Economic costs encompass both explicit, accounting costs and implicit costs, which are the opportunity costs of using resources in a particular way. Therefore, economic costs are the same as opportunity costs. Option A and D are incorrect because economic costs are not limited to past explicit costs. Option B is incorrect because implicit costs are only a part of economic costs.

Economic Costs