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What is the Hawthorne effect?
Economic Profit
The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing a profit above the opportunity cost.
Explicit and Implicit Costs
Explicit costs are direct payments made to others in the course of running a business, like wages or rents, while implicit costs represent the opportunity costs of using resources owned by the business.
Marginal Costs
The cost of producing one additional unit of a good or service, reflecting the change in total cost that comes from a one unit increase in output.
Marginal Benefits
The additional benefit received from consuming or producing one more unit of a good or service.
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