Answer:
The correct answer is option C.
Explanation:
The implicit cost is that cost which has already been incurred. It exists without the exchange of money and is not recorded for accounting purpose. Implicit cost in the production process is the opportunity cost involved.
The opportunity cost is the benefit sacrificed on choosing other alternative.
Here, the cost of shoe polish is explicit cost. The rent is a fixed and explicit cost.
The wages earned from other job is opportunity cost. Similarly, interest rate from saving also represents opportunity cost.
So, option C is the correct answer.
