Definition of "Implicit cost"

Donna Coglitore real estate agent
Donna Coglitore, Real Estate Agent Keller Williams Realty

Also called opportunity cost. The return foregone from an alternative employment of time or facilities. For example, if a building is rented out to a charity for a bingo night for $1,000 but it could have been rented out to a company for $10,000, the return foregone is $9,000.

 

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