Question

what is difference between explicit cost and implicit cost?​

Answer 1

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• Explicit costs are out-of-pocket costs, that is, payments that are actually made.
• Wages that a firm pays its employees or rent that a firm pays for its office are explicit costs.
• Implicit costs are more subtle, but just as important.
• They represent the opportunity cost of using resources already owned by the firm.

@xXDivuXx⛄

Answer 2

αηѕωєя⬇️

♡ᴇxᴘʟɪᴄɪᴛ ᴄᴏꜱᴛꜱ ᴀʀᴇ ᴏᴜᴛ-ᴏꜰ-ᴘᴏᴄᴋᴇᴛ ᴄᴏꜱᴛꜱ, ᴛʜᴀᴛ ɪꜱ, ᴘᴀʏᴍᴇɴᴛꜱ ᴛʜᴀᴛ ᴀʀᴇ ᴀᴄᴛᴜᴀʟʟʏ ᴍᴀᴅᴇ.

♡ᴡᴀɢᴇꜱ ᴛʜᴀᴛ ᴀ ꜰɪʀᴍ ᴘᴀʏꜱ ɪᴛꜱ ᴇᴍᴘʟᴏʏᴇᴇꜱ ᴏʀ ʀᴇɴᴛ ᴛʜᴀᴛ ᴀ ꜰɪʀᴍ ᴘᴀʏꜱ ꜰᴏʀ ɪᴛꜱ ᴏꜰꜰɪᴄᴇ ᴀʀᴇ ᴇxᴘʟɪᴄɪᴛ ᴄᴏꜱᴛꜱ.

♡ɪᴍᴘʟɪᴄɪᴛ ᴄᴏꜱᴛꜱ ᴀʀᴇ ᴍᴏʀᴇ ꜱᴜʙᴛʟᴇ, ʙᴜᴛ ᴊᴜꜱᴛ ᴀꜱ ɪᴍᴘᴏʀᴛᴀɴᴛ.

♡ᴛʜᴇʏ ʀᴇᴘʀᴇꜱᴇɴᴛ ᴛʜᴇ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ ᴄᴏꜱᴛ ᴏꜰ ᴜꜱɪɴɢ ʀᴇꜱᴏᴜʀᴄᴇꜱ ᴀʟʀᴇᴀᴅʏ ᴏᴡɴᴇᴅ ʙʏ ᴛʜᴇ ꜰɪʀᴍ.