Implicit costs
A) Include only payments to labor.
B) Are the sum of actual monetary payments made for resources used to produce a good.
C) Include the value of all resources used to produce a good.
D) Are the value of resources used to produce a good but for which no monetary payment is made. Implicit costs are the value of resources used, even when no direct payment is made.

Question

Quizplus · Accepted Answer

Implicit costs are the value of resources used, even when no direct payment is made. Therefore, the best choice is D which states that they are the value of resources used to produce a good but for which no monetary payment is made. Choices A and B are incorrect because they refer only to actual payments made, while choice C is also incorrect because it includes all resources, including those for which payment was made.

Implicit Costs