A difference between explicit and implicit costs is that

A) explicit costs must be greater than implicit costs.
B) explicit costs do not require a direct monetary outlay by the firm, whereas implicit costs do.
C) implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do.
D) implicit costs must be greater than explicit costs.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of earning revenue from these resources elsewhere.

Explicit Costs

These are the direct, out-of-pocket payments made by businesses for operational expenses like wages, rent, and materials.

Monetary Outlay

The amount of money spent on a particular transaction or investment.