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kirill [66]
3 years ago
10

Suppose the chicago cubs could rent out wrigley field (the field the players play on) to local youth leagues for $11,000 per mon

th. the $11,000 per month reflects the ________ of capital.
Business
2 answers:
matrenka [14]3 years ago
8 0
<span>implicit cost

Good luck =]</span>
xz_007 [3.2K]3 years ago
6 0
The $11,000 would actually represent the explicit cost of capital.

The cost is clearly defined, and can be quantified by the amount physically paid by the youth leagues. The implicit cost of capital would be the opportunity costs of renting the field, such as passing up on the opportunity to rent out a cheaper field (for example, if the other field was $5,000 less, your implicit cost would be $5,000)- it is not something you explicitly pay, but a cost you incur nonetheless by making a different decision.
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