While taking economic decisions, we should take into account ___

implicit costs

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explicit cost

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both implicit and explicit costs

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neither implicit or explicit costs

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Solution

The correct option is C
both implicit and explicit costs

While taking economic decisions, we should take into account both implicit and explicit costs.

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Similar questions

Distinguish between explicit cost and implicit cost with examples.

Q. Answer the following question briefly:
Define implicit cost. How is it different from explicit cost?

Q. Find the correct matching of the items of List-I with the items of List-II given below:

List-I	List-II
(a) Normal Profit	I. Excess of total revenue over total explicit cost
(b) Economic profit	II. Total revenue equals total economic cost
(c) Accounting profit	III. Excess of total revenue over total of explicit and implicit costs and a normal rate of return

Suppose that a firm produces 200,000 units a year and sells them all for Rs 10 each. The explicit costs of production are Rs 1,500,000 and the implicit costs of production are Rs 300,000. The economic and accounting profits for the firm are respectively.

Which of the following statements about opportunity cost is TRUE?

I. Opportunity cost is equal to implicit costs plus explicit costs.
II. Opportunity cost only measures direct monetary costs.
III. Opportunity cost accounts for alternative uses of resources such as time and money.

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While taking economic decisions, we should take into account ___

The correct option is C both implicit and explicit costs While taking economic decisions, we should take into account both implicit and explicit costs.

The correct option is C
both implicit and explicit costs

While taking economic decisions, we should take into account both implicit and explicit costs.