Costs as Opportunity Costs A firm's cost of production includes all the opportunity costs of making its output of goods and services H arc Inc. items and derived items c ht o 2001 by Harcourt, IncHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Costs as Opportunity Costs A firm’s cost of production includes all the opportunity costs of making its output of goods and services