implicit cost

Implicit costs are the opportunity costs in factors of production that a producer already owns.

Implicit costs - such as what an investor pays for a volatile stock or when trades are badly executed - make up the rest.

In other words, an implicit cost is any cost that results from using an asset instead of renting, selling, or lending it.

Even in the absence of taxes, turnover has both explicit and implicit costs, which directly reduce returns on a dollar-for-dollar basis.

The difference between the land prices is the implicit cost of all the local land-use controls, from zoning to the time it takes to get a permit.

Finally, commissions that truly reflect trading costs, as opposed to the implicit costs of the spread, may help investors think twice before trading too much.

In hiring decisions, the implicit costs of internal loans have exactly the same economic standing as the explicit costs of external loans.

In common usage, as in accounting usage, "cost" typically does not refer to implicit costs and instead only refers to direct monetary costs.

If the firm cannot obtain a profit after deducting $10,000 a month for this implicit cost, it ought to move premises (or close down completely) and take the rent instead.

Of course, in addition to the spread, which is an implicit cost of trading, small investors also face explicit costs in the form of commission fees charged by their retail brokers.

He believes better knowledge of both the budgeted and implicit costs of the war as spelled out in the book will further a more coherent dialogue on present and future related policy matters.

Such a method in calculating depreciation differs from other methods, such as straight-line depreciation in that it is included in the calculation of implicit cost, and thus economic profit.

So we need to take a position on toll systems which brings them into line with Community arrangements and correlates them with the implicit cost of the infrastructure used and its management and maintenance.

There have been claims that it will cost the average person taking a charter flight in implicit costs, adding up all the costs together, an extra 14 for each time they travel from their Member State and back again.

An explicit cost is a direct payment made to others in the course of running a business, such as wage, rent and materials, as opposed to implicit costs, which are those where no actual payment is made.

In economics, an implicit cost, also called an imputed cost, implied cost, or notional cost, is the opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires.

The cost of emigration, which includes both the explicit costs, the ticket price, and the implicit cost, lost work time and loss of community ties, also play a major role in the pull of emigrants away from their native country.

Implicit costs also represent the divergence between economic profit (total revenues minus total costs, where total costs are the sum of implicit and explicit costs) and accounting profit (total revenues minus only explicit costs).

And it is convenient to consider him as an entrepreneur even with respect to the resource he owns (in the sense that, in using it for his own production process, rather than selling it at its market price to other producers, he is 'buying' it at an implicit cost).