implicit costs

USAGE SUMMARY

The phrase "implicit costs" is correct and usable in written English. You can use it when discussing economic concepts related to opportunity costs or the value of foregone alternatives. For example, "The implicit costs of attending college include the income you could have earned if you worked instead." Alternative expressions include "opportunity costs" and "hidden costs."

✓ Grammatically correct

Economics

Business

Finance

Human-verified examples from authoritative sources

Exact Expressions

15 human-written examples

Finally, commissions that truly reflect trading costs, as opposed to the implicit costs of the spread, may help investors think twice before trading too much.

The New York Times

Robinson Crusoe had a problem of allocating his time between sleep, garnering food, building shelter, etc.; and he confronted implicit costs of extending any one activity, for more food meant less of other things.

Britannica

Indeed, there are several implicit costs that seem to have to be taken into account when implementing a charge according to the former power, i.e. a weight-distance charge.

Transport Policy

In 2012, a federal court struck down the Texas law on the grounds that: The implicit costs of obtaining SB 14-qualifying ID will fall most heavily on the poor and that a disproportionately high percentage of African Americans and Hispanics in Texas live in poverty...

The Guardian - Opinion

Implied volatility is not so much "the market's best guess about how volatile the markets will be in the future" as the option seller's best guess of his implicit costs of dynamically hedging his position.The expression "both less liquid and more volatile" might be better stated as "less liquid implies more volatile".

The Economist

DAG with tasks and implicit costs.

Journal of Cloud Computing

Human-verified similar examples from authoritative sources

Similar Expressions

44 human-written examples

This is far less than the implicit cost of federal student and mortgage loan guarantees.

The Economist

And a softening rupee increases the implicit cost of India's high foreign debt.

The New York Times

This reduces the burden of child-rearing on the parents and cuts the implicit cost of children.

The Economist

That change is hard to explain without invoking the implicit cost-benefit calculations that transformed social norms.

The New York Times

The difference between the land prices is the implicit cost of all the local land-use controls, from zoning to the time it takes to get a permit.

The New York Times

Expert writing Tips

Best practice

When discussing business decisions, consider both explicit and "implicit costs" to get a complete picture of profitability. Don't just focus on the immediate out-of-pocket expenses.

Common error

Avoid using "implicit costs" when you actually mean explicit costs. Explicit costs are direct, out-of-pocket expenses, while "implicit costs" are opportunity costs representing forgone alternatives.

Linguistic Context

The phrase "implicit costs" functions as a noun phrase, typically used as a subject or object in sentences related to economics, business, and finance. It refers to the opportunity costs associated with a decision or action.

Expression frequency: Common

Frequent in

News & Media

30%

Science

30%

Academia

25%

Less common in

Formal & Business

15%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "implicit costs" refers to the opportunity costs of using resources already owned. Ludwig AI highlights that it's grammatically sound and most frequently found in News & Media, Science and Academia. Remember to differentiate "implicit costs" (opportunity costs) from explicit costs (out-of-pocket expenses). To broaden your vocabulary, alternatives include "opportunity costs" and "hidden costs". Considering both explicit and "implicit costs" provides a comprehensive understanding of profitability in business decisions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

opportunity costs

Focuses on the value of the next best alternative forgone.

hidden costs

Emphasizes the costs that are not immediately obvious or apparent.

intangible costs

Highlights the non-monetary or difficult-to-quantify costs.

unseen expenses

Stresses the expenses that are not readily visible or calculated.

indirect costs

Refers to costs that are not directly attributable to a specific activity or project.

implied expenses

Suggests expenses that are inferred or understood, but not explicitly stated.

tacit costs

Highlights costs that are understood or implied without being openly expressed.

unacknowledged costs

Focuses on costs that are present but not formally recognized or admitted.

unaccounted for expenses

Implies that these expenses were not properly calculated or predicted.

embedded costs

Highlights costs that are inherently part of a system or process.

FAQs

How do I use "implicit costs" in a sentence?

You can use "implicit costs" to describe the opportunity cost of a decision. For example, "The "implicit costs" of starting a business include the salary you could have earned working for someone else."

What's the difference between "implicit costs" and explicit costs?

"Implicit costs" are the opportunity costs of using resources already owned by the firm, while explicit costs are the out-of-pocket expenses a firm incurs. Considering both is vital for economic decision-making.

What are some synonyms for "implicit costs"?

Alternatives to "implicit costs" include "opportunity costs", "hidden costs", or "intangible costs", depending on the specific context.

How do "implicit costs" affect business decisions?

"Implicit costs" are crucial for evaluating the true profitability of a business. By considering these costs, businesses can make more informed decisions about resource allocation and investment.