Asked by
Isabel nishimoto
on Dec 19, 2024
Verified
Implicit costs are
A) the same as economic costs.
B) comprised entirely of actual expenses paid by the firm for its inputs.
C) opportunity costs of self-employed resources.
D) always greater than accounting costs.
Implicit Costs
The opportunity costs of using resources owned by the firm for its own use, rather than selling them for a profit elsewhere.
Economic Costs
The total value of all resources used in the production of goods or services, including both explicit and implicit costs.
Opportunity Costs
The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.
- Gain insight into the importance of implicit and explicit costs within the context of business decision processes.
- Gain insight into the repercussions of opportunity costs and their association with implicit costs.
Verified Answer
OG
Learning Objectives
- Gain insight into the importance of implicit and explicit costs within the context of business decision processes.
- Gain insight into the repercussions of opportunity costs and their association with implicit costs.