What do a firm's opportunity costs of production amount to

Question

Quizplus · Accepted Answer

Opportunity costs of production include both explicit costs (such as wages, rent, and materials) and implicit costs (such as the opportunity cost of the owner's time and the forgone income from other opportunities). Therefore, the opportunity costs are a combination of both implicit and explicit costs. Total revenue is not included in opportunity costs, as it is a separate consideration related to the firm's income.

What Do a Firm's Opportunity Costs of Production Amount to