Explanation:

Certainly! Here’s a breakdown of the options:

- Implicit cost:

- These are the costs of resources already owned by the firm.

- They are not directly paid out with cash, but represent opportunity costs.

- Examples include the entrepreneur’s time or using the company’s own building.

- Correct Answer: Expenditure on factors of production supplied by the entrepreneur falls under implicit costs.

- Explicit cost:

- Direct payments made to others during production, like rent, wages, and materials.

- They are out-of-pocket expenses and easily recorded.

- Fixed cost:

- Costs that do not change with the level of output produced.

- Examples include rent and salaries.

- Variable cost:

- Costs that fluctuate with the level of production.

- Examples are raw materials and direct labor.