Question

Economic Cost = ___

• A. Economic Cost = Implicit Cost - Explicit Cost
• B. Economic Cost = Implicit Cost + Explicit Cost
• C. Economic Cost = Explicit Cost - Implicit Cost
• D. $\text{Economic Cost}=\frac{\text{Explicit Cost + Implicit Cost}}{2}$

Answer 1

The correct option is B

Economic Cost = Implicit Cost + Explicit Cost

Economic cost includes implicit cost and explicit cost.