Questions: Which of the following is an implicit cost to a firm that produces a good or service? Multiple Choice labor costs costs of renting or buying land for a production site

The answer is neither of the options provided: labor costs or costs of renting or buying land for a production site.

Explanation:

1. Labor costs: These are explicit costs because they involve direct monetary payments to employees for their work. Explicit costs are out-of-pocket expenses that a firm incurs in the process of producing goods or services.

2. Costs of renting or buying land for a production site: These are also explicit costs. They involve direct payments for the use or purchase of land, which are recorded in the firm's financial statements.

Implicit costs, on the other hand, are the opportunity costs of using resources that the firm already owns. They do not involve direct monetary payments. An example of an implicit cost would be the foregone income that the owner of a business could have earned if they had worked elsewhere instead of running their own business. Since neither of the options provided fits this description, neither is an implicit cost.