Production costs to an economist

A) consist only of explicit costs.
B) reflect opportunity costs.
C) never reflect monetary outlays.
D) always reflect monetary outlays.

Production Costs

Expenses directly related to the creation and manufacturing of a product, including raw materials, labor, and overhead.

Explicit Costs

These are direct, out-of-pocket payments for expenses incurred by a business, such as wages, rent, and materials.

Opportunity Costs

The cost of foregoing the next best alternative when a decision is made to pursue a particular action.