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Ede4ka [16]
3 years ago
5

An example of an explecit cost of production would be

Business
2 answers:
vfiekz [6]3 years ago
8 0

Answer:

The cost of renting capital equipment like machinery for a business or the salaries paid to workers.

Explanation:

An explicit cost is an expense that is actually incurred by the business, meaning cash outflow. These costs are incurred to ensure that the business continues operating and the cash outflow reduces the cash balances of the business. Examples of such costs are like rental expenses and salary expenses. An implicit cost is the best alternative use of cash by the business that is not taken. An example would be: a business uses its cash to buy inventory instead of investing in fixed income securities. In this case, the implicit cost of using its cash resources is the foregone interest income that could have been earned from the interest bearing securities.

Pavel [41]3 years ago
3 0
An example would be 
The Cost of flour for a baker
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