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Economic Profits
Profits calculated by subtracting both explicit and implicit costs from total revenues.
Explicit Costs
The direct payment made to others in the course of running a business, such as wages, rent, and materials.
Implicit Costs
Implicit costs are the opportunity costs associated with a company's use of internal resources that could have been utilized elsewhere, not directly paid out in cash.
Economic Costs
The total cost of choosing one action over another, including both explicit costs (direct outlays) and implicit costs (opportunity costs).
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