Asked by Clayton Carter on Jul 09, 2024
Verified
Consider a small family wheat farm. List some examples of implicit costs of farming.
Implicit Costs
The opportunity costs that arise from using assets, resources, or funds in a certain way rather than in the next best alternative.
Wheat Farm
A specialized agricultural operation focused on the cultivation and production of wheat.
- Distinguish between explicit and implicit costs in the context of economic and accounting profits.
Verified Answer
FE
Faiza EttangiJul 12, 2024
Final Answer :
the lost earnings of any family member who engages in farming but who could work at a different occupation, the forgone interest on any family monies invested in the farm
Learning Objectives
- Distinguish between explicit and implicit costs in the context of economic and accounting profits.