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i have confusion between opportunity cost and implicit cost according to definitions they seem the same thing , than why it is asked separately ?
I am also confused in opportunity and implicit cost
Implicit cost associated with any decision and its a non cash expenditure whereas opportunity cost is a foregone value associated with current rather than next best use of an assets.
The decision whether undertake investment A or Investment B has opportunity cost because both investments are mutually exclusive, if we take investment A than we have to sacrifice the benefit that can come from investment B and vice versa.
Implicit cost refer to the value of input owned and used by the firm in its own production activity.
I think this is the difference between these two concept
In the given example opportunity cost and implicit cost both refer to salary as a manager of 80,000.
Yes, i think you are right
any one can provide solution
I am still confuse, please discuss and help
60,000 to supervisor is an explicit cost not opportunity cost.
Thank you, Khan Sahib.
Thank you, Zafar Sahib for your kind help.
Bahi ya Answer theek hay??
need full solution