An industrialist withdraws ?10,000 from his term deposits and purchases a generation set. It involves an element both of explicit cost as well as implicit cost. Explain this fact with a reason.

In this case, the explicit cost is the payment made for the purchase of generation set because it is an out-of-pocket expense incurred by the industrialist. In other words, it's the actual cash payment made by the industrialist for purchase of generation set.

And the implicit cost is the interest on term deposit of Rs 10000 given up by the industrialist, which he could've earned had he not made investment in the generation set. In other words, it's the next best alternative in which Rs. 10000 could be employed.