Final answer:
Explicit costs are out-of-pocket costs, such as wages, raw materials, and rent. Implicit costs represent the opportunity cost of using resources that the firm already owns. The explicit costs from the given options are wages, raw materials, and rent.
Step-by-step explanation:
Explicit costs, as outlined in the provided information, refer to tangible, out-of-pocket expenses that a firm incurs and involves actual payments made. In the given options, the explicit costs are indeed A. Wages, B. Raw materials, and D. Rent.
Wages (Option A) constitute a significant portion of explicit costs as they represent the monetary compensation paid to employees for their services. This includes salaries, hourly wages, and any other direct compensation paid by the firm to its workforce.
Raw materials (Option B) are also explicit costs as they represent the actual costs incurred by a business to acquire the necessary inputs for its production process. This includes the costs associated with purchasing materials, components, or goods that are used in the manufacturing or production of the final product.
Rent (Option D) is another example of an explicit cost. Rent involves the actual monetary payment made by the firm for the use of physical space or property for its operations. This could include payments for office space, manufacturing facilities, or any other rented property used in the course of business.
Implicit costs, in contrast, involve opportunity costs and are not reflected in actual cash outlays. Examples of implicit costs include the owner's labor without a formal salary and the use of personal property for business purposes. However, among the provided options, A. Wages, B. Raw materials, and D. Rent represent explicit costs as they involve direct, tangible expenditures made by the firm.