An owner withdraws ₹ 10,000 from his personalbank account and puchaes a machinery for the business. Identify the explicit costand implicit cost.

An owner withdraws ₹ 10,000 from his personalbank account and puchae

1.	An owner withdraws ₹ 10,000 from his personalbank account and puchaes a machinery for the business. Identify the explicit costand implicit cost.
Answer» <html><body><p></p>Solution :Imputed intereston amount <a href="https://interviewquestions.tuteehub.com/tag/withdrawn-3281170" style="font-weight:bold;" target="_blank" title="Click to know more about WITHDRAWN">WITHDRAWN</a> from bank' is the implicit <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> as the <a href="https://interviewquestions.tuteehub.com/tag/owner-1144378" style="font-weight:bold;" target="_blank" title="Click to know more about OWNER">OWNER</a> <a href="https://interviewquestions.tuteehub.com/tag/wouldhave-3285964" style="font-weight:bold;" target="_blank" title="Click to know more about WOULDHAVE">WOULDHAVE</a> earned the interestif the amountremained in the bank. "Amount of `₹10,000` paid to purchase the machinery" is theexplicit cost as it is <a href="https://interviewquestions.tuteehub.com/tag/actual-361632" style="font-weight:bold;" target="_blank" title="Click to know more about ACTUAL">ACTUAL</a> money expenditure.</body></html>