Answer to Question #52908 in Microeconomics for Yana
1.Explicit costs would include:
b. the interest loss of the business owner on money withdrawn from his/her saving account
and invested in the business.
c. the loss of rent on a building the business owner owns and uses in his/her business.
d. the opportunity costs of the business owner's time.
e. the use of tools owned by the business owner and dedicated to the business.
2. Unlike implicit costs, explicit costs:
a. reflect opportunity costs.
b. include the value of the owner's time.
c. are not included in the accounting statement of the firm.
d. are actual cash payments.
e. do not change with the output rate of the firm.
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