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Unformatted text preview: Consider the case of a small producer carrying out productive activity: he may provide tea and snacks to the workers; or the owner-manager of a firm may carry goods to the market in his own motor car; or the owner may visit the factory even on Sundays and holidays and may work for extra hours. All these contributions are unpaid cost items in the act of production. These are implicit costs of production. Explicit inputs are obvious and receive full cash compensation; implicit inputs are not obvious and do not receive full value for their contribution....
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This note was uploaded on 11/26/2011 for the course ECONOMIC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10