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Questions and Answers
What is explicit cost a part of?
What is explicit cost a part of?
- Variable costs
- Fixed costs
- Sunk costs
- Opportunity costs (correct)
Which type of cost does explicit cost contribute to?
Which type of cost does explicit cost contribute to?
- Marginal costs
- Average costs
- Historical costs
- Total opportunity costs (correct)
What is the role of explicit cost in decision-making?
What is the role of explicit cost in decision-making?
- It only affects fixed costs
- It influences the overall opportunity costs (correct)
- It is irrelevant in decision-making
- It impacts variable costs
