Question

Define explict cost and implicit cost....

Answer 1

Heya..

Explict cost.. it is the opportunity cost of purchasing inputs from the market...

Implicit cost... it is the opportunity cost if using self owned inputs...

Answer 2

Heya......

Explict cost.....

It is the cost of purchasing inputs from the market in terms of their payments..

Such as... Labour wages...


Implicit cost.......

It refers to the value if self owned use resources....

Such as...Intrest ten on our own building....