Include only payments to workers and lenders. Represent actual monetary payments made for resources used to produce a good such as oil. Are the costs to produce a good or service for which no direct payment is made. Are the total opportunity costs of resources and inputs used to produce a good

Question

Herman

Business

12 September, 09:56

Include only payments to workers and lenders. Represent actual monetary payments made for resources used to produce a good such as oil. Are the costs to produce a good or service for which no direct payment is made. Are the total opportunity costs of resources and inputs used to produce a good

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Tiggy · Answer 1

Implicit costs are the costs to produce a good or service for which no direct payment is made

Explanation:

Implicit cost is the opportunity cost to produce goods and services. Therefore, there is no direct payment involves the implicit cost. It is a cost which a firm or organisation must give up to take up another project. So, no direct payment is involved, it is just an opportunity cost of taking up some other project.