Which of the following would be an implicit cost to the firm? a. The firm must h

Question

Which of the following would be an implicit cost to the firm? a. The firm must hire workers at $11 per hour. b. The firm must pay $4,000 per month in interest on money borrowed to build a new plant. c. The firm must pay $500 per month in telephone bills. d. The firm's owner has given up earning $75,000 per year at another job in order to run the firm Which of the following would be an implicit cost to the firm? a. The firm must hire workers at $11 per hour. b. The firm must pay $4,000 per month in interest on money borrowed to build a new plant. c. The firm must pay $500 per month in telephone bills. d. The firm's owner has given up earning $75,000 per year at another job in order to run the firm Which of the following would be an implicit cost to the firm? a. The firm must hire workers at $11 per hour. b. The firm must pay $4,000 per month in interest on money borrowed to build a new plant. c. The firm must pay $500 per month in telephone bills. d. The firm's owner has given up earning $75,000 per year at another job in order to run the firm

Explanation / Answer

Answer

Option d

d. The firm's owner has given up earning $75,000 per year at another job in order to run the firm

The implicit cost is the opportunity cost of an action the

explicit cost is paid in real money but the implicit cost is paid an opportunity cost of time or in term of time or value to time by a person or given money.

and all other are explicit costs as all are paid in real money.

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