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The non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are
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- Explicit costs
- Original costs
- Implicit costs
- Replacement costs
- Explicit costs
Correct Option: C
In economics, an implicit is the opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires. It is the opposite of an explicit cost, which is borne directly. In other words, an implicit cost is any cost that results from using an asset instead of renting, selling, or lending it. These are costs a business incurs without actually spending money.
