Suppose that the Toronto Blue Jays could rent out the Rogers Centre (the field they play on)to local youth leagues for $11 000 per month.The $11 000 per month is the _____ cost of capital.

Question

Quizplus · Accepted Answer

The $11,000 per month is an implicit cost because it represents the opportunity cost of not renting out the Rogers Centre to local youth leagues. Implicit costs are the potential income lost when a resource is not utilized in its next best alternative use.

Suppose That the Toronto Blue Jays Could Rent Out the Rogers