Please give, with examples, the graphical representation of explicit cost and implicit cost, (with relation to opputunity cost).
Dear Student
There is no graph of explicit cost and implicit cost.
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There is no graph of explicit cost and implicit cost.
- Explicit cost- It refers to actual payment such as wages and salaries. It is also known as out of pocket cost . These cost could be recorded in books of account.
- Implicit cost- An implicit cost is a cost that do not require an outflow of cash from firm. It is referred as opportunity cost i.e the cost of resources already owned by firm that could used in some other ways.
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