Answer to Question #125556 in Microeconomics for umer

Question

What is the full cost (direct cost +opportunity) of pursuing BBA from IMSciences? Impose appropriate assumptions if exact value(s) of item(s) is/are not available.

Answer 1

Direct costs are related to producing a good or service. A direct cost includes raw materials, labor, and expense or distribution costs associated with producing a product.

An implicit cost is any cost that has already occurred but not necessarily shown or reported as a separate expense. It represents an opportunity cost that arises when a company uses internal resources toward a project without any explicit compensation for the utilization of resources.