Answer to Question #192075 in Economics for michael

Question

implicit cost is a key differentiator of accounting and economics cost. true/false

Answer 1

An implicit cost is any cost that has already occurred but is not necessarily shown or presented as a separate expense. It represents the opportunity cost that arises when a company allocates internal resources to a project without any explicit compensation for resource use. This means that when a company allocates its resources, it always gives up the opportunity to make money from using resources elsewhere.

true