There are two types of costs associated with production: ____ costs that require monetary payments, and ____ costs that do not.

Question

Quizplus · Accepted Answer

Explicit costs are monetary expenses such as wages, rent, and materials, while implicit costs are opportunity costs that do not require monetary payments, such as the value of the owner's time or the foregone opportunity to work on a different project.

There Are Two Types of Costs Associated with Production: ____