Which of the following is an implicit cost of production? A) ...

[DelorasTo]

Which of the following is an implicit cost of production?
 
  A) interest paid on a loan to a bank
  B) wages paid to labor plus the cost of carrying benefits for workers
  C) rent that could have been earned on a building owned and used by the firm
  D) the utility bill paid to water, electricity, and natural gas companies

Question 2

Implicit costs can be defined as
 
  A) the non-monetary opportunity cost of using the firm's own resources.
  B) the deferred cost of production.
  C) total cost minus fixed costs.
  D) accounting profit minus explicit cost.

[mcomstock09]

Answer to Question 1

C

Answer to Question 2

A