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1.1.1

The value of inputs that are owned by an entrepreneur and used in the production process is called _____ cost.

A. explicit
B. implicit
C. total
D. average


Sagot :

The value of inputs that are owned by an entrepreneur and used in the production process is referred to as implicit cost. Implicit costs represent the opportunity cost of utilizing resources that the entrepreneur already owns instead of renting or buying additional resources. This term is used to account for the earnings that could have been made if those resources were employed in an alternative use.

Therefore, the correct answer is:

B. implicit