Question

In economics, total cost includes _________.

• A. accounting cost
• B. oppoutunity cost
• C. entrepreneur's talents
• D. all of the above

Answer 1

The correct option is D all of the above

Economists calculate the value of total cost as the sum of explicit and implicit costs. The explicit costs are accounting costs. The implicit costs include opportunity costs and entrepreneurs rewards. These are the cost incurred indirectly due to investing time and financial resources in this project, both of which have alternative uses and could earn rewards elsewhere.