Examlex
The Intervention Wheel contains wedges that are color-coded. What is the purpose of these wedges?
Implicit Costs
The opportunity costs that arise from using resources that a business already owns rather than earning revenue from those resources elsewhere.
Explicit Costs
Direct, out-of-pocket expenses incurred in conducting a business activity, such as wages, rent, and materials.
Economic Profits
Profits earned by a company after accounting for both explicit (direct) and implicit (opportunity) costs.
Marginal-Cost Curve
A graph that shows the relationship between the marginal cost of producing an additional unit and the total quantity of the product produced.
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