Ask Question
15 May, 09:08

Which of the following costs is an explicit cost for you? You hire a worker who could have received the same wage working for your competitor. You decide to use an extra room for your business that you could have rented out to your neighbor. You spend your time running your own business even though a large corporation offered you a generous contract. You raise cattle on your family-owned farm even though you could sell your land to a developer.

+5
Answers (1)
  1. 15 May, 10:10
    0
    Answer: Option A

    Explanation: Explicit cost refers to those payments that are directly made to others for running the business course. These are usually those cost which are unavoidable and includes rent, wage etc. Thus hiring and paying a worker is an explicit cost.

    All other options are examples of implicit or opportunity cost.

    Hence the correct option is A.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following costs is an explicit cost for you? You hire a worker who could have received the same wage working for your ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers