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    Economic profit and opportunity costs

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    The key difference is that economic profit factors in implicit costs (sometimes called opportunity costs). Just what do we mean by opportunity costs anyway?

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    https://brainmass.com/economics/pricing-output-decisions/economic-profit-opportunity-costs-186661

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    Opportunity cost

    The opportunity cost or alternative costs are the returns from the second best use of the organization's resources or here in this case the individual's capability.

    For example a farmer who is producing wheat can also produce potatoes with the same factors.

    Therefore the opportunity cost of a ...

    Solution Summary

    This explain the concept and interrelationship between Economic profit and opportunity costs

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