A Producer invests his ownsavings in starting a business and employs a manager to look after it. Identifyimplicitand explicitcostsfrom thisinformation.

A Producer invests his ownsavings in starting a business and employs a

1.	A Producer invests his ownsavings in starting a business and employs a manager to look after it. Identifyimplicitand explicitcostsfrom thisinformation.
Answer» Solution :Implicit cost: IMPUTED interest on savings. ITIS a costbecause he looses interest whichhe would habv EARNED if he hadlent his saving . EXPLICIT Cost : Salary paidto manager . It is a cost because it is actualmoney expenditure on an INPUT.