Final answer:
Explicit costs are actual payments, while implicit costs represent opportunity costs. Understanding these concepts is vital for business profitability.
Explanation:
Explicit costs are out-of-pocket costs like wages or rent payments, while implicit costs represent the opportunity cost of using resources owned by the firm, such as the owner's time or depreciation of equipment.
The relationship between cost and revenue is crucial for a business's profitability. Understanding the distinction between explicit and implicit costs helps in accurate cost analysis and decision-making.
Learn more about explicit and implicit costs here:
https://brainly.com/question/50184884
