Which of the following are implicit costs for a typical firm?
A)Insurance costs
B)Electricity costs
C)The opportunity costs of the capital owned and used by the firm
D)The cost of the labor hired by the firm
E)The cost of raw materials

Question

Which of the following are implicit costs for a typical firm?​
A)Insurance costs
B)Electricity costs​
C)The opportunity costs of the capital owned and used by the firm​
D)The cost of the labor hired by the firm​
E)The cost of raw materials​

Quizplus · Accepted Answer

Implicit costs are the opportunity costs associated with a firm's use of its own resources, such as the capital owned and used by the firm. Insurance costs, electricity costs, labor costs, and raw materials costs are explicit costs as they involve direct payment of money by the firm.

Which of the Following Are Implicit Costs for a Typical