Does anyone know if inexplicit costs (including normal profit) are part of TFC? Or TVC? Given that when price equals AC, the economic profits are zero, this would seem to imply that implicit costs are included in the derivation of TC, and other sources directly say that TC includes explicit and implicit costs. I imagine this is not important for any calculations for the exam, but it would make it conceptually much clearer. Thanks!
Things like cost of renting machines and normal profits are included in a firm’s TFCs.
Cool Oyster, thanks for clearing that up for me.