Economics 101: Explicit Costs | SterlingTerrell.net

Economics 101: Explicit Costs

What are explicit costs?

Explicit Costs are actual cash outlays of money.

Think if them as direct payments for something.

  • A check is paid for rent.
  • A wire transfer pays a salary.
  • A credit card is swiped to purchase raw materials.

These are explicit costs, obviously different from implicit costs.