Cost as Opportunity Cost Explicit Costs input cost that require an out lay of money by the firm Implicit Costs input costs that do not require an outlay of money by the firm Choice 1 deposit=$ 300, 000(interest rate=5% Choice 2 deposit$ 100,000 borrowed capital=$ 200,000Cost as Opportunity Cost • Explicit Costs – input cost that require an outlay of money by the firm • Implicit Costs – input costs that do not require an outlay of money by the firm • Choice 1 – deposit=$300,000 (interest rate=5%) • Choice 2 – deposit=$100,000 – borrowed capital=$200,000