Question

Which of the following statements is false? Economists consider all costs to be implicit costs. An implicit cost is a nonmonetary opportunity cost. An explicit cost is a cost that involves spending money. Economic costs include both accounting costs and implicit costs.

Answer 1

Answer:

A) Economists consider all costs to be implicit costs.

Explanation:

Implicit cost is the cost which came as a result of making use of an asset without willing to sell or rent it out. Implicit costs make up economic costs. Implicit costs are nonmonetary opportunity costs. Implicit costs expose the similarities of accounting profit and economic profit. Economic profit should always be less than or equal to accounting profit. Implicit costs are also referred to as imputed costs or notional costs. All costs cannot be implicit costs because some costs such as the explicit costs come in monetary value.