Question

multiple select question
select all that apply
which of the following explains the concept of explicit costs?
□ a firms monetary payments received for the use of resources owned by the firm.
□ a firms monetary payments made for the use of resources owned by others.
□ a firms monetary payments that self - employed resources could have earned in their best alternative use.
□ a firms monetary payments to those who supply labor services, materials, fuel, and transportation services.

Explanation:

Explicit costs are out - of - pocket expenses a firm incurs. They involve payments made for resources owned by others and for services like labor, materials etc. Payments received for firm - owned resources are not costs. And payments that self - employed resources could have earned in alternative use are implicit costs.

Answer:

B. A firm's monetary payments made for the use of resources owned by others.
D. A firm's monetary payments to those who supply labor services, materials, fuel, and transportation services.