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Implicit Costs
Costs that represent the loss of potential income from resources when they are not utilized in their best alternative use.
Opportunity Cost
Forgoing possible gains from various alternatives by picking a specific one.
Personal Savings
The portion of an individual's income that is not spent on consumption and is saved for future expenses, investments, or emergencies.
Explicit Cost
Direct, out-of-pocket payments for the purchase of inputs or resources for business operations.
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