Calculate (a) Implicit cost (b) Explicit cost and (c ) Econimic cost from the following: {:(,"Paticulars","(Rs. in Lakh)"),((i),"Payment of salaries",5000),((ii),"Expenditure of raw material",2000),((iii),"Rent of owner occupied building",1000),((iv),"Donations to charitable trust",500),((v),"Estimated value of salary of owner who worked as manager",200),((vi),"Minimum profit (expected)",400),((vii),"Super Normal profit (estimated)",700):}

Calculate (a) Implicit cost (b) Explicit cost and (c ) Econimic cost f

1.	Calculate (a) Implicit cost (b) Explicit cost and (c ) Econimic cost from the following: {:(,"Paticulars","(Rs. in Lakh)"),((i),"Payment of salaries",5000),((ii),"Expenditure of raw material",2000),((iii),"Rent of owner occupied building",1000),((iv),"Donations to charitable trust",500),((v),"Estimated value of salary of owner who worked as manager",200),((vi),"Minimum profit (expected)",400),((vii),"Super Normal profit (estimated)",700):}
Answer» <html><body><p><br/></p>Solution :(a) <a href="https://interviewquestions.tuteehub.com/tag/explicit-455193" style="font-weight:bold;" target="_blank" title="Click to know more about EXPLICIT">EXPLICIT</a> <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a>: (i)+(<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>)=5000+2000=7000 <br/> (b) <a href="https://interviewquestions.tuteehub.com/tag/implicit-504822" style="font-weight:bold;" target="_blank" title="Click to know more about IMPLICIT">IMPLICIT</a> cost: (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>)+(v)+(vi)=1000+200+400=1600 <br/> (c ) Economic cost: (a) + (b)=7000+1600=86000</body></html>