mr.Rahim is plaining to pursue MBA studies.initail inquiry shows that he will have to pay RM 25,000 as tuition fee,buy books for RM1,000,and pay for transport RM 1,000.The MBA study programme will extend over 15 months.Mr.Rahim is working now with a salary of RM2,500 per month.Being a full time student,he will have to forego the income from his present job for the period of study. work out: (a) financial cost (b) Economic cost of doing MBA.

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Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.