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IRINA_888 [86]
3 years ago
11

8. Describe how opportunity costs are related to profits.

SAT
1 answer:
Law Incorporation [45]3 years ago
8 0
The opportunity cost of any decision is what is given up as a result of that decision. Opportunity cost includes both explicit costs and implicit costs. The firms economic profits are calculated using opportunity costs. Accounting profits are calculated using only explicit costs.
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