Question

What are types of opportunity costs

Answer 1

1. Explicit Cost
2. Implicit Cost

Explicit Cost: This opportunity cost involves money payment (and sometimes a market transaction).

Implicit Cost: This opportunity cost DOES NOT involves money payment or a market transaction.

Step-by-step explanation:

Answer 2

This distinction gives rise to two types of opportunity cost--explicit and implicit.

1:Explicit Cost: This is an opportunity cost that involves a money payment and usually a market transaction. ...

2:Implicit Cost: This is an opportunity cost that DOES NOT involve a money payment or market transaction.