Respuesta :

Explicit costs are those cash payments which a firm makes to others for the purchase of inputs.

Example:

  • (i) Wages paid to labourers
  • (ii) Payment made for the purchase of raw material.

Answer:

[tex] \: [/tex]

Explicit cost is the actual money expenditure on inputs or payment made to outsiders for hiring their factor services.

ƒσя єχαмρℓє :

  • Wages paid to the employees

  • Rent paid for hired premises

  • Payment for Raw materials etc.