Which of the following statements is true? Costs are always explicit, never implicit. Costs are always implicit, never explicit. George runs a stationery shop; he paid Frank $5,000 for the carpet he installed in the shop. The $5,000 for carpet is an implicit cost. An implicit cost is a cost that represents the value of resources used in production for which no actual monetary payment is made. а. b. с. d. е. None of the above

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.