Learn › Economics glossary › Firms and competition

Economics glossary · Firms and competition

Implicit costs

What implicit costs means in economics, as one of the costs and profits an economist counts, with an example and a question to test yourself.

Definition
Implicit costs
Implicit costs are the opportunity cost of using resources the firm already owns, often ones its owner contributes.
Example

Can you think of an example of implicit costs?

Test yourself

Can you name the two kinds of cost and the two kinds of profit an economist counts?

Learn it properly: the module

Related terms