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insens350 [35]
2 years ago
14

Which of the following statements is correct?A. Economists consider opportunity costs to be included in a firm's total revenues.

B. Economists consider opportunity costs to be included in a firm's costs of production.C. Opportunity costs equal explicit minus implicit costs.D. All of the above are correct.
Business
1 answer:
Gre4nikov [31]2 years ago
7 0

Answer:

Option (B) is correct.

Explanation:

Opportunity costs refers to the cost of selecting other alternative which means that the benefit that is sacrificed from the next best alternative. Implicit costs is also known as the implicit costs and economists include this cost to the total cost of production.

Total cost includes both explicit costs and implicit costs. Explicit costs refers to the costs that are incurred for operating business activities.

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