Difference between Implicit Cost and Explicit Cost

1.	Difference between Implicit Cost and Explicit Cost
Answer» Implicit cost is opportunity cost of using self-owned inputs. Explicit cost is a opportunity cost of purchasing inputs from the market.<br>implied cost, or notional cost, is the opportunity cost equal to what a firm must give up in order to use a factor of production for which it already owns and thus does not pay rent. It is the opposite of an explicit cost, which is borne direct An explicit cost is a direct payment made to others in the course of running a business, such as wage, rent and materials, as opposed to implicit costs, where no actual payment is made.

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