Implicit costs are costs that do not require an outlay of cash by the firm.

Name: Implicit costs are costs that do not require an outlay of cash by the firm.
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Implicit costs refer to the opportunity cost of resources already owned by the firm, such as the owner's time and foregone income from using that time to run the business instead of working elsewhere. It does not involve a direct cash outflow.

Implicit Costs Are Costs That Do Not Require an Outlay