Distinguish between explicit and implicit costs, giving examples of each.

label Economics
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college?

Nov 3rd, 2015

Thank you for the opportunity to help you with your question!

Thank you for the opportunity to help you with your question!

Implicit cost is incurred when a person foregoes an alternative action but does not make an actual payment. Forgone benefits of any transaction, relates to implicit cost.

Explicit cost is transacted in form of money and is directly lost. It is an easy accounted cost such as rent, wages. It also refers to hose cost a business person has to pay from his own pocket

 For example. the explicit cost of a night at the movies includes the customer's ticket and soft drinks, but the implicit cost includes the pay he would have earned if he had chosen to work instead.

explicit and implicit costs of attending college

Implicit cost - Tuition and books

explicit cost - a night out with friends or attending a conference


Please let me know if you need any clarification. I'm always happy to answer your questions.Please let me know if you need any clarification. I'm always happy to answer your questions.
Nov 3rd, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Nov 3rd, 2015
...
Nov 3rd, 2015
Aug 23rd, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer