Answer :
Implicit costs are the opportunity expenses connected with choosing one option over another.
What is Implicit costs?
An implicit cost, also known as an imputed cost, implied cost, or notional cost in economics, is the opportunity cost equal to what a company must forgo in order to employ a piece of production that it already owns and is thus not subject to rental payments.
It contrasts with an explicit expense, which is paid for up front. [1] In other words, an implicit cost is any expense incurred as a result of using an asset as opposed to leasing, selling, or employing it in a different way. The phrase also refers to lost wages as a result of choosing not to work.
Additionally, implicit costs indicate the difference between accounting profit (total revenues minus total costs, where total costs are the sum of implicit and explicit costs) and economic profit (total revenues minus total costs).
According to our question-
Rosa's stream of potential future profits in her native nation therefore amounts to $500,000, which is regarded as an implicit cost. To make $800,000, she had to forego this much money.
Explicit expenses consist of:
Transportation costs come to $5,000.
(ii) Application and other processing fees: $4000
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