What are the types of opportunity cost?

The different types of opportunity cost are explicit cost and implicit cost. Under explicit cost, the burden of opportunity cost is transferred to the one making payment from the original person. In the case of implicit cost, the opportunity cost is not transferred to anyone else. Explicit cost is an opportunity cost which involves market transaction or money transfer whereas implicit cost is an opportunity cost which does not involve any money transfer or market transaction. You can read about the Indian Economy Notes For UPSC Preparation in the given link.

Further readings:

  1. Bad Banks – Idea Proposed Due to COVID-19
  2. Cashless Economy in India – UPSC GS-III Notes

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