An explicit cost is a direct payment made to others in the course of running a business, such as wage, rent and materials,[1] as opposed to implicit costs, where no actual payment is made.[2] It is possible still to underestimate these costs, however: for example, pension contributions and other "perks" must be taken into account when considering the cost of labour.[2]
Explicit costs are taken into account along with implicit ones when considering economic profit. Accounting profit only takes explicit costs into account.[1]
YouTube Encyclopedic
-
1/3Views:160 98014 13122 601
-
Economic Profit and Costs- ACDC Econ - Micro 3.6
-
Explicit and implicit costs, for unit 5, www.inflateyourmind.com by John Bouman.
-
Explicit vs implicit costs
Transcription
References
- ^ a b Carbaugh, Robert J. (January 2006). Contemporary economics: an applications approach. Cengage Learning. p. 94. ISBN 978-0-324-31461-8. Retrieved 3 October 2010.
- ^ a b Lipsey, Richard G. (1975). An introduction to positive economics (fourth ed.). Weidenfeld & Nicolson. pp. 214–7. ISBN 0-297-76899-9.
This page was last edited on 7 June 2019, at 23:37