What term describes the indirect, non-purchased costs related to resources provided by an entrepreneur?

The term that describes the indirect, non-purchased costs related to resources provided by an entrepreneur is implicit costs. Implicit costs refer to the value of resources that are not directly paid for in a monetary transaction but represent an opportunity cost of the entrepreneur's decisions. These costs encompass the potential income that could have been earned if the resources were employed in their next best alternative use.

For instance, if an entrepreneur uses their own building for a business, the implicit cost is the rent they could have earned had they leased it to someone else. Understanding implicit costs is crucial as they represent the true economic cost of decisions made by the entrepreneur, helping to assess the viability and profitability of a business venture accurately.

In contrast, opportunity costs represent the potential benefits an individual misses out on when choosing one alternative over another, which can include both implicit and explicit costs. Fixed costs are expenses that do not change with the level of goods or services produced, while variable costs fluctuate with production levels. Implicit costs specifically highlight the non-monetary sacrifice involved in resource allocation.