Implicit and explicit costs are different in that

A. explicit costs are opportunity costs; implicit costs are not.

B. implicit costs are opportunity costs; explicit costs are not.

C. the latter refer to nonexpenditure costs and the former to monetary payments.

D. the former refer to nonexpenditure costs and the latter to monetary payments.

ANSWER: D. the former refer to nonexpenditure costs and the latter to monetary payments.

Q&A Education