economic cost concepts

3
ECONOMIC COST CONCEPTS

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Page 1: Economic cost concepts

ECONOMIC COST CONCEPTS

Page 2: Economic cost concepts

Explicit Costs

Are usually obvious and readily quantifiable monetary payments a firm makes to another party to

obtain resources.

Page 3: Economic cost concepts

May be considered as the monetary income a firm sacrifices when it uses its own resources rather than using these resources as those that can be

supplied to the open market for alternative uses.

IMPLICIT COSTS