Topic Content:
- The Theory of Cost
The theory of cost explains the level of production. The cost of production is the cost incurred in the use of factors of production (which are land, capital, labour, and entrepreneur) in order to produce goods and services.
To a producer, cost is an expense incurred in the production of goods or the rendering of services. A consumer believes cost is a price paid for goods or services received.
Other Forms of Cost:
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