Which opportunity cost term refers to out-of-pocket costs that are easily identified?
AImplicit costs
BSunk costs
CExplicit costs
DMarginal costs
Answer & Solution
Correct answer: C. Explicit costs
Explicit costs are the out-of-pocket costs a firm can easily identify, such as wages and rent.
Keep practising Building Blocks in Economics
Browse all Building Blocks in Economics questions for CBSE Class 9, or explore more Social Science topics.
Related questions
What is one way entrepreneurs can exploit opportunities?What does bootstrapping try to minimise?Which two thinkers defined entrepreneurship in terms of risk-taking?What do venture capital firms take for seed money?What do revenue-based financing lenders receive for growth capital?Which activity describes startup investing?What is an internal startup in a large company?When is a startup usually in its seed round?