If an input is owned and used by a firm, then its _________.

CA Foundation · Business Economics · MTP · January 2026
If an input is owned and used by a firm, then its _________.
(A) A. Explicit cost is zero.
(B) B. Implicit cost is zero.
(C) C. Opportunity cost is zero.
(D) D. Economic cost is zero.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Explicit cost is zero.

Topics: Theory of Production and Cost

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