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A Producer Starts the Business in the Building Owned by Him and Borrows Money for Running It. Identify Implicit Cost. - CBSE (Arts) Class 12 - Economics

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Question

A producer starts the business in the building owned by him and borrows money for running it. Identify implicit cost.

Solution

Implicit cost is the value of self-owned inputs in their next best alternative use. Here, the producer using his own building for business activity is the implicit cost.

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Solution A Producer Starts the Business in the Building Owned by Him and Borrows Money for Running It. Identify Implicit Cost. Concept: Basic Concepts of Cost.
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