What is the principle distinction between explicit costs and implicit? costs?
A. There is no real difference between explicit and implicit costs.
B. Implicit costs are usually larger than explicit costs.
C. Implicit costs must be paid immediately, but explicit costs need to be paid only in the long run.
D. Explicit costs are direct, out-of-pocket payments, while implicit costs are all foregone opportunity costs
Answer: D. Explicit costs are direct, out-of-pocket payments, while implicit costs are all foregone opportunity costs
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