What do wages paid to factory workers, interest paid on a bank loan, forgone interest, and the purchase of component parts have in common?

A) None are either implicit or explicit costs.
B) All are opportunity costs.
C) All are implicit costs.
D) All are explicit costs.

Implicit Costs

Implicit costs, also known as imputed or opportunity costs, are the costs of resources owned by the firm that are used in its own production process.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs in the production process.

Opportunity Costs

The value of the best alternative foregone when a decision is made to pursue a particular action, essentially the cost of choosing one option over another.