Economists claim that a farmer who owns her land, provides all her own labor, and calculates her profits from the farm by subtracting explicit costs from total revenues will

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Economic profits take into account both explicit and implicit costs. In this scenario, the farmer is not accounting for the opportunity costs of her own labor and the use of her own land, which are implicit costs. By only subtracting explicit costs from total revenues, she overlooks these implicit costs, thus overstating her economic profits.

Economists Claim That a Farmer Who Owns Her Land, Provides