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Opportunity Cost

Question 3 • FL-2106010-M/J Civics B-CR

The $20,000 down payment for the food truck is an .

Answer
A
explicit cost
B
implicit cost

Explanation

An explicit cost is a direct payment made to buy or use a resource. The $20,000 down payment is money paid for the food truck, so it is an explicit cost; an implicit cost is an opportunity cost that does not involve a direct payment.

AI-written and checked against the verified answer.

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