Are money cost and explicit cost same?
Dear Student,
Money cost and Explicit cost are not same.
Explicit Cost - It is the actuall money expenditure on inputs or payments made to outsiders for hiring their factors services. For example:- rent paid for hire premises. etc
Money cost - It is the expense incurred by firm to produce a commodity. It is also known as nominal cost. For example:- depreciation, interest on capital etc
regards
Money cost and Explicit cost are not same.
Explicit Cost - It is the actuall money expenditure on inputs or payments made to outsiders for hiring their factors services. For example:- rent paid for hire premises. etc
Money cost - It is the expense incurred by firm to produce a commodity. It is also known as nominal cost. For example:- depreciation, interest on capital etc
regards