ECONOMICS

Detailed explanation-1: -Definition of Total Cost: the market value of the inputs a firm uses in production. 4. Definition of Profit: total revenue minus total cost.

Detailed explanation-2: -total cost. market value of the inputs a firm uses in production. Total cost can be divided into two types of costs: fixed costs and variable costs.

Detailed explanation-3: -The firm’s total cost of production is the sum of all its variable and fixed costs. The firm’s marginal cost is the per unit change in total cost that results from a change in total product.

Detailed explanation-4: -Examples of input costs are direct materials, direct labor, and factory overhead.

Detailed explanation-5: -Fixed costs tend to be costs that are based on time rather than the quantity produced or sold by your business. Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs.