It is the opportunity cost of using self-owned inputs. It is the market value of self-owned inputs in their next best alternative use. For example, estimated rent of entrepreneurs on building … See more

Short run is a period of time during which some factors are fixed and some are variable. It has two components: fixed cost and variable cost. TC=TVC+TFC RELATED … See more

It refers to the expenditure incurred by the producer on the variable factors of production. It changes with the change in the level of output. It is also known as prime cost or dire… See more

Average cost is the cost per unit of output product. It is also called unit cost of production. Average fixed cost is the fixed cost of per unit of output. Average variable cost is the … See more