Explicit costs are costs of payments done per month in a business and include rent and salary for the staff. On the other hand, implicit costs are the subtle opportunity costs of resources owned by a firm, for example the salary Sarah used to get before quitting her job.
explicit costs
implicit costs (as if she will be working as head of makeup artist instead of opening saloon , then she will earn Rs 1,20,000 per month).
Comments
Leave a comment