Answer:
a. Payments for labor purchased in the labor market - explicit cost
b. A firm’s use of a warehouse that it owns and could rent to another firm - implicit cost
c. Rent paid for the use of a warehouse not owned by the firm - explicit cost
.d. The wages that owners could earn if they did not work for themselves - implicit cost
Explanation:
Explicit cost is the actual cost incurred by a firm in carrying out its daily activities. They include cost of acquiring labour - wages, payment for acquiring materials used in the production cost, transport cost, insurance ,etc
Explicit costs are usually recorded in the financial statements of a firm.
Implicit costs are also known as opportunity cost. It is what would have been earned by a factor of production if it were engaged in another production activity.
Implicit costs aren't usually recorded in the financial statements.
