Compare the four market forms on the standard criteria, with Nepali examples of each, and locate the Competition Promotion and Market Protection Act 2063 in the picture. 4.

ConceptMeaningExample (a Kathmandu law practice)Explicit costActual money payments to outsidersoffice rent, clerk's salary, bar-registration feesImplicit costThe opportunity cost of self-owned, self- employed resources — no cash changes handsthe salary the advocate could have earned in a firm; return on own capital investedAccounting costExplicit costs only — the bookkeeper's ledgerthe rent and salary actually paidOpportunity costValue of the next-best alternative forgone (Unit 1.4)earnings as in-house counsel, forgoneEconomic costExplicit + implicit costs — the economist's full ledgerbooks + the forgone salary The consequences (two exam lines): 1. Economic profit = revenue − (explicit + implicit costs); Accounting profit = revenue − explicit costs only. Economic profit is therefore smaller — and a firm earning zero economic profit is doing exactly as well as its next-best alternative: it earns normal profit (the minimum return that keeps it in the business — itself an implicit cost). 2. Normal profit is a cost; supernormal (above-normal) profit invites entry. That single sentence drives the whole theory of markets (3.4).