Total economic costs include

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Total economic costs include all of the above - a normal rate of return, out-of-pocket costs, and opportunity costs of all inputs. A normal rate of return reflects the opportunity cost of investing resources in a particular project instead of investing them elsewhere. Out-of-pocket costs are the actual expenses incurred in producing a good or service, such as wages, materials, and rent. Opportunity costs are the value of the next best alternative foregone when making a decision, such as the foregone income from choosing to invest in one project instead of another.

Total Economic Costs Include