Implicit costs can be defined as
A)accounting profit minus explicit cost.
B)the non-monetary opportunity cost of using the firm's own resources.
C)the deferred cost of production.
D)total cost minus fixed costs.

Question

Quizplus · Accepted Answer

Implicit costs refer to the non-monetary opportunity costs of using a firm's own resources, such as the foregone alternative use of capital or labor. It is different from explicit costs, such as wages and rent, which are actual out-of-pocket expenses.

Implicit Costs Can Be Defined as