ECONOMICS

Detailed explanation-1: -Implicit costs are input costs that do not require an outlay of money by the firm.

Detailed explanation-2: -Explicit costs are input costs that require a direct outlay of money by the firm.

Detailed explanation-3: -Implicit costs are a specific type of opportunity cost: the cost of resources already owned by the firm that could have been put to some other use. For example, an entrepreneur who owns a business could use her labor to earn income at a job.

Detailed explanation-4: -Implicit cost, on the other hand, includes costs for which there is no monetary outlay.

Detailed explanation-5: -Definition. Implicit cost is the cost that has been already incurred by the individual or business, but it has not been reported as a separate expense. Opportunity cost is referred to as any potential benefit that any business or individual misses out when choosing an alternative option over another.