An implicit cost is
A)any cost a firm cannot avoid in the short run
B)any expenditure a firm makes
C)an opportunity cost
D)accurately measured in accounting statements
E)ignored by economists

Question

Quizplus · Accepted Answer

An implicit cost is the opportunity cost of using resources that the firm already owns or that the firm's owners have supplied themselves rather than purchasing them in the market. It is not a cost that involves any monetary outflow, but rather a cost associated with forgoing the best alternative use of a resource.

An Implicit Cost Is