Secrkon 10 Flashcards
1
Q
Implicit costs
A
No outlay of money but involve the inflows of cash that are forgone
2
Q
Economic profit
A
Takes into account both implicit and explicit costs
3
Q
Accounting profit
A
Just explicit costs
4
Q
Normal profit
A
Economic profit equal to zero
5
Q
Explicit cost
A
Direct payment of cash
