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12 Ricky and Kyle are building a castle of blocks together in their kindergarten class.Ricky is building the turrets and Kyle is building the moat.This interaction illustrates
Economic Profit
The variance between a company's overall incomes and its combined explicit and implicit expenses.
Implicit Costs
The opportunity costs of using resources owned by the firm for its operations instead of renting, selling, or utilizing them in other ways.
Implicit Costs
The opportunity costs of using resources that a firm already owns, typically non-out-of-pocket costs.
Explicit Costs
Direct, out-of-pocket payments for goods or services used in production, such as wages or rent.
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