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implicit cost — the opportunity cost of using resources owned by a firm for production purposes without a cash outlay

Part of speech: NOUN

Definition: the opportunity cost of using resources owned by a firm for production purposes without a cash outlay

Pronunciation (IPA): /ɪmˈplɪsɪt kɔːst/

Example Sentences

  • The CEO's implicit cost was the $500,000 salary he could have earned elsewhere.
  • My mom's bakery has zero implicit costs because she claims she would never work anywhere else anyway!
  • Students often ignore the implicit cost of their time when choosing between studying and working.

implicit cost

NOUN

[/ɪmˈplɪsɪt kɔːst/]

the opportunity cost of using resources owned by a firm for production purposes without a cash outlay

the opportunity cost of using resources owned by a firm for production purposes without a cash outlay
💡 Concept

the opportunity cost of using resources owned by a firm for production purposes without a cash outlay

Explicit costs are clear, but implicit costs disappear like illicit gains!
🎵 Rhyme

Explicit costs are clear, but implicit costs disappear like illicit gains!

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🎤Pronunciation

🇺🇸 US/ɪmˈplɪsɪt kɔːst/
🇬🇧 UK/ɪmˈplɪsɪt kɒst/

🌳Etymology

Rootplic

🎵Rhyme

explicitillicitelicit
explicit
illicit
elicit

🔗Collocations

implicit cost calculation
total implicit costs
measure implicit costs
implicit cost analysis
implicit cost consideration
implicit vs explicit costs

📝Examples

“The CEO's implicit cost was the $500,000 salary he could have earned elsewhere.”

😄 Fun example

“My mom's bakery has zero implicit costs because she claims she would never work anywhere else anyway!”

“Students often ignore the implicit cost of their time when choosing between studying and working.”

😄 Fun example

“The implicit cost of using my garage as an office is missing my car every time it rains.”

📚Related Words

Synonyms

opportunity costhidden costeconomic costforegone benefit

Antonyms

explicit costaccounting costout-of-pocket cost

Related

economic profitnormal profitsunk costmarginal cost

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