A Difference Between Explicit and Implicit Costs Is That

question 126

Multiple Choice

A difference between explicit and implicit costs is that

• A)explicit costs must be greater than implicit costs.
• B)explicit costs do not require a direct monetary outlay by the firm, whereas implicit costs do.
• C)implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do.
• D)implicit costs must be greater than explicit costs.

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Definitions:

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