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Commerce · Q269

Economics

Graduate and Post Graduate · Commerce · question 269

Q269

_____ is an implicit cost of production

A.
Wages of the labour
B.
Charges for electricity
C.
Interest on owned money capital
Answer
D.
Payment for raw material

Answer: Option C

Solution

Answer: Option C
Solution:
Interest on owned money capital is an implicit cost of production. The costs in which there is no cash outlay, is known as Implicit Cost.