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Implicit Costs
The opportunity costs of using resources owned by the firm for its own production instead of selling or renting them to others.
Interest Rate
The price, calculated as a percentage of the amount borrowed, that a lender charges a borrower for the use of their savings for one year.
Salary
A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.
Explicit Cost
Direct payment made to others in the course of running a business, such as wages, rent, and materials.
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