What Are Implicit Costs

question 179

Multiple Choice

What are implicit costs?

• A)Costs that are actually paid out in money.
• B)The annual cost of wear and tear on assets.
• C)The costs of buying machinery and equipment.
• D)Costs that are not actually paid out in money.
• E)Costs that reflect diminishing returns.

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Definitions:

Opportunity Cost

The act of abandoning potential benefits available in other choices upon selecting a specific alternative.

Room and Board

Refers to the combined cost of housing and food for students at a university or boarding school.

College Expenses

Costs associated with attending college, which can include tuition, room and board, books, supplies, and other living expenses.