Asked by Kelvyn almanzar on Jul 26, 2024

verifed

Verified

When economists speak of a firm's costs, they are usually excluding the opportunity costs.

Opportunity Costs

The value of the next best alternative foregone as the result of making a decision.

  • Discern between economic profits and accounting profits by grasping the concept of implicit costs.
verifed

Verified Answer

JG
Jeron GallimoreAug 01, 2024
Final Answer :
False
Explanation :
Economists consider both explicit costs (direct, out-of-pocket expenses) and implicit costs (opportunity costs of using resources that could have been employed elsewhere) when analyzing a firm's costs.