Answer: A business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable.
Explanation:
A firm's implicit costs are its opportunity costs. Opportunity costs are the returns that a company would have made had it invested in the next best venture than the one they are currently in.
If a business is to be truly profitable, it is important that they earn enough to cover both their out of pocket costs as well as their opportunity costs that way it can be definitively said that the venture that they went into was better than the next best venture they could have gone into.