The Difference Between Explicit Costs and Implicit Costs

question 355

Multiple Choice

The difference between explicit costs and implicit costs

• A) is that explicit costs are opportunity costs while implicit costs are not.
• B) is that implicit costs are opportunity costs while explicit costs are not.
• C) is that explicit costs are short-run costs and implicit costs are long-run costs.
• D) is that explicit costs involve resources that are purchased and implicit costs involve resources the firm already owns.

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Definitions:

Chromoplasts

Plant cell organelles that contain pigments and are responsible for the colors of fruits and flowers.

Pigments

Substances that give color to materials by absorbing certain wavelengths of light and reflecting others, widely used in paints, inks, and biological functions.

Motor Proteins

Proteins that convert chemical energy into mechanical work, driving cellular movements such as muscle contraction and intracellular cargo transport.