What Is the Explicit and Implicit Cost

question 19

Essay

What is the explicit and implicit cost?

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Definitions:

Skimming Pricing Strategy

A pricing strategy that involves setting high prices initially to target early adopters and then lowering the price over time.

Portable Digital HD Camera

A lightweight, compact device capable of capturing high-definition videos and images, designed for ease of transportation and use on the go.

Production Costs

The total expense of manufacturing a product, including raw materials, labor, and overhead costs.

Prestige Pricing

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.