- CFA Exams
- CFA Exam: Level I 2021
- Study Session 4. Economics (1)
- Reading 12. Topics in Demand and Supply Analysis
- Subject 5. Economic Cost vs. Accounting Cost
CFA Practice Question
An implicit cost refers to ______.
B. the opportunity cost of factors of production provided by the owners of the firm
C. explicit payments to the factors of production
A. any increase in the value of the assets owned by the firm
B. the opportunity cost of factors of production provided by the owners of the firm
C. explicit payments to the factors of production
Correct Answer: B
This is the definition of implicit cost.
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