Explain the Concepts of Explicit Costs and Implicit Costs

question 8

Essay

Explain the concepts of explicit costs and implicit costs.Why do economists include implicit costs in their calculation of profits?

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Definitions:

Critical Period

A specific time in development when exposure to certain stimuli or experiences is necessary for proper development.

Imprinting

A rapid learning process that occurs early in the life of a social animal, such as a bird, wherein it forms attachments and develops a concept of its own identity.

Bronfenbrenner's Systems

A theoretical model that explores how different environmental systems influence human development, ranging from immediate surroundings to broader societal cultures.

Microsystem

The immediate settings with which the child interacts, such as the home, the school, and the child’s peers.