In economic theory the costs of a firm
A)tend to be less than the everyday use of the term costs would suggest
B)includes implicit as well as explicit outlays
C)always decline as more output is produced
D)are usually defined in such a way that profits will be larger than the

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In economic theory, the costs of a firm include both implicit and explicit costs. Implicit costs are the opportunity costs of using resources that the firm already owns, while explicit costs are the direct, out-of-pocket expenses. This comprehensive approach ensures that all relevant costs are considered when analyzing a firm's financial situation.

In Economic Theory the Costs of a Firm