A difference between explicit and implicit costs is that

Question

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Implicit costs refer to non-monetary opportunity costs, such as the value of the owner’s time or the forgone income from choosing one alternative over another. These costs do not require a direct monetary outlay by the firm. On the other hand, explicit costs are direct expenses that require a monetary outlay, such as rent, wages, and materials. Thus, explicit costs require a direct monetary outlay by the firm, whereas implicit costs do not.

A Difference Between Explicit and Implicit Costs Is That