What are explicit costs?
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What is the principle distinction between explicit costs and implicit costs?
A. Explicit costs are direct, out-of-pocket payment, while implicit costs are all foregone opportunity costs.
B. Implicit costs must be paid immediately, but explicit costs need to be paid only in the long run.
C. Implicit costs are usually larger than explicit costs.
D. There is no real difference between explicit and implicit costs
A firm's opportunity costs of production are equal to its
Which of the following is the formula used to calculate economic profit?
Total Revenues - (Explicit Costs - Implicit Costs)
Total Revenues - (Explicit Costs + Implicit Costs)
Total revenues - Explicit costs
Total Revenues + (Explicit Costs - Implicit Costs)