PRODUCTION AND ITS COSTS. Principles of Microeconomic Theory, ECO 284 John Eastwood CBA 213 523-7353 e-mail address: John.Eastwood@nau.edu http://jan.ucc.nau.edu/~jde. ALL ABOUT COSTS. Explicit and Implicit Costs Accounting Profit and Economic Profit Sunk Costs.
An explicit cost is incurred when an actual monetary payment is made.
Implicit costs are the value of the resources used in the production of a good for which no monetary payment is made.
TFC, TC, AFC, and ATC up.
TVC, TC, AVC, ATC, and MC up.