Answer
opportunity cost
the entrepreneurs time and funds
Work Step by Step
"A firm’s implicit cost is defined as the opportunity cost of nonpurchased inputs, such as the entrepreneur’s time and funds."
Opportunity cost is the value or benefit that is sacrificed to get something needed.
Implicit cost does not involve monetary payments. Implicit cost is an opportunity cost.
Entrepreneurs build their firms by sacrificing the time that could have been invested to earn somewhere else and the personal funds that could have been used for other benefits/purposes.
The time and funds are personal investments and hence, non purchased inputs. They still contribute to the smooth running of a firm.
