1.

Give one difference between Implicit costs and Explicit costs.

Answer»
Implicit CostExplicit Cost
1. Implicit costs are the costs of self owned and self supplied factors of production.1. Explicit costs are the contractual money payments actually made to owners of various factors of production.
2. Implicit costs are generally not recorded in the firm’s hooks of account.2. Explicit costs are recorded in the firm’s books of account.



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