Which of the following would be an example of an implicit cost? i) forgone investment opportunities
Ii) wages of workers
Iii) raw materials costs
A) i) only
B) ii) only
C) ii) and iii) only
D) i) and iii) only

Question

Quizplus · Accepted Answer

An implicit cost is a cost that is not explicitly stated or measured in dollars but is still incurred by the business. Forgone investment opportunities are an example of an implicit cost because they represent the potential revenue that could have been earned if the money had been invested elsewhere. The wages of workers and raw material costs are both explicit costs because they are measured in dollars and are necessary expenses for producing a product.

Which of the Following Would Be an Example of an Implicit