Question

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?

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.