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order of integration and show that both orders yield the same area. What is this area?
Implicit Costs
Indirect expenses related to business operations, such as opportunity costs, not directly paid out in cash.
Economic Profits
The excess of total revenue over total costs, including both implicit and explicit costs.
Implicit Costs
Costs that represent the opportunity cost of using resources that are not directly paid for, such as the owner’s time or the use of assets owned by the firm.
Explicit Costs
Direct, out-of-pocket payments for resources or services used in the production process.
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