Costs of Production

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Costs of Production: (Chapter 1.5 e gelecek)
Explicit Cost: Costs are limited to what the business has to payout. E.g. rent, wages …
İmplicit Costs: Opportunity cost of resources, inventories, and capital. Firm is not necessarily
writing a check to pay for them. E.g. forgone salary, interest payment
Economic Cost: Explicit Cost + Implicit Cost
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