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Legal Interest Rate
The maximum rate of interest that lenders can legally charge borrowers, often set by law or regulation.
Economic Profits
Profits that exceed the opportunity costs of all resources used by a firm, including both explicit and implicit costs.
Accounting Profits
The financial gain calculated by subtracting total explicit costs from total revenue, as recorded in the financial statements.
Explicit Costs
Costs that involve direct monetary payment by a business to purchase or maintain resources.
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