Costs incurred by the producer for the use of self-owned resources are called
A)Implicit costs
B)Explicit costs
C)Accounting costs
D)Total costs
E)Marginal costs

Question

Quizplus · Accepted Answer

Costs incurred by the producer for the use of self-owned resources are called implicit costs. Explicit costs refer to the actual payments made by the producer for various inputs used in the production process. Accounting costs refer to the explicit costs plus any depreciation costs. Total costs include both explicit and implicit costs. Marginal costs refer to the change in total cost resulting from a change in output. However, in this case, the best choice based on the given information would be option A, implicit costs.

Costs Incurred by the Producer for the Use of Self-Owned