The implicit cost of capital is:

A) the explicit cost of capital that the firm might have used but didn't need to.
B) depreciation.
C) the opportunity cost of the capital used by a business.
D) the cost of human capital.

Implicit Cost

The opportunity costs that arise from using assets, resources, or funds in specific ways rather than the next best alternative.

Capital

The total value of assets owned by an individual or firm—physical assets plus financial assets.

Opportunity Cost

The cost of the next best alternative foregone as the result of making a decision.