What is the difference between explicit costs and implicit costs? List three examples each of explicit costs and implicit costs that may be experienced by a small business
What will be an ideal response?
Explicit costs are costs that involve spending money. Implicit costs are nonmonetary opportunity costs. Explicit costs experienced by a small business may include wages, utility costs, and rent. Implicit costs experienced by a small business may include foregone salary, foregone interest, and economic depreciation.
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