A producer starts business by investing his own savings and hiring the labour. Identify implicit cost and explicit cost from this information.

Nikita Chetry
Latest Answer: 1 year ago
In: Commerce

A producer starts business by investing his own savings and hiring the labour. Identify implicit cost and explicit cost from this information.

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1 Answers

Answered By Anita Sahani
Answer: 1 year ago

(i) Interest on the investment of his own savings by a producer is an explicit cost as he would have earned interest on his savings if he had lent them.(ii) Wages to the labour are explicit cost as th... Read More

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