21 Jan 2022
Problem 9
Page 184
Section: REVIEW QUESTIONS
Chapter 7: Production, Costs, and Industry Structure
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21 Jan 2022
Introduction
Explicit cost: These are direct and clearly stated cost sustained by a business.
Implicit cost: These costs are incurred when a firm chooses to go on a certain specific path. In other words, these are the prior cost of actions. When a firm prefers one resource over the other it gives rise to implicit cost.
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