Asked by Andrew Cavender on Jul 13, 2024
Verified
Consider a small hair styling salon. List some examples of explicit costs of this business.
Explicit Costs
Direct, out-of-pocket expenses paid by firms for inputs to production, such as wages, rent, and materials, as opposed to implicit costs which are not directly paid out in cash.
- Discern between explicit and implicit costs, grasping their significance for economic and accounting profit.
Verified Answer
DB
dylan bradshawJul 17, 2024
Final Answer :
shampoo, conditioner, other products for giving perms and color treatments, scissors, hair dryers, curling irons, flat irons, mirrors, barber chairs, combs, brushes, electricity, hired help, various types of insurance
Learning Objectives
- Discern between explicit and implicit costs, grasping their significance for economic and accounting profit.