What are implicit costs? an implicit cost is

a. a cost that remains constant as output changes.

b. a cost that changes as output changes.

c. a cost incurred in the long run.

d. a nonmonetary opportunity cost.

e. the highest-valued alternative that must be given up to engage in an activity. how are implicit costs different from explicit costs?

a. an explicit cost is a cost that involves spending money, while an implicit cost is a nonmonetary cost.

b. an explicit cost is not an opportunity cost, while an implicit cost is an opportunity cost.

c. an explicit cost is a cost incurred holding output constant , while an implicit cost is a cost incurred as output changes.

d. an explicit cost is a cost incurred in the short run, while an implicit cost is a cost incurred in the long run.

e. both a and

b?

Question

Clare Forbes

Business

4 December, 10:13

What are implicit costs? an implicit cost is

a. a cost that remains constant as output changes.

b. a cost that changes as output changes.

c. a cost incurred in the long run.

d. a nonmonetary opportunity cost.

e. the highest-valued alternative that must be given up to engage in an activity. how are implicit costs different from explicit costs?

a. an explicit cost is a cost that involves spending money, while an implicit cost is a nonmonetary cost.

b. an explicit cost is not an opportunity cost, while an implicit cost is an opportunity cost.

c. an explicit cost is a cost incurred holding output constant , while an implicit cost is a cost incurred as output changes.

d. an explicit cost is a cost incurred in the short run, while an implicit cost is a cost incurred in the long run.

e. both a and

b?

+5

Answers (1)

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Alejandro Randall · Answer 1

What are implicit costs? an implicit cost is a nonmonetary opportunity cost.

How are implicit costs different from explicit costs? an explicit cost is a cost that involves spending money, while an implicit cost is a nonmonetary cost.

An implicit cost is a cost that as already occurred for a company but it isn't reflected on a report as an expense. This type of cost happens when a company uses resources they own and puts them towards a project without expectation of being paid for lending out their resources. An implicit cost can be something like the hours of labor put into working a business rather than a direct product to be sold being worked on.