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Economic Profits
The surplus remaining after total costs are subtracted from total revenues, taking into account both explicit and implicit costs.
Accounting Profits
The difference between total revenue and explicit costs; the net income a firm reports on its income statement.
Total Costs
The aggregate of all expenses associated with manufacturing products or services, which includes fixed and variable costs.
Most Efficient Output
The level of production at which a firm achieves the lowest possible cost per unit, maximizing productivity and minimizing waste.
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