Question

unlike implicit costs, explicit costs: a. are actual payments. b. include the value of the owners time. c. are not included in the accounting statement of the firm. d. reflect opportunity costs.

Explanation:

Explicit costs are direct, out-of-pocket expenses a firm makes, while implicit costs are non-monetary opportunity costs. Option b, c, d describe implicit costs: implicit costs include owner's time value, aren't in accounting statements, and reflect opportunity costs. Only option a matches explicit costs.

Answer:

a. are actual payments.