About this document
Theory of Cost in Production by Muhammad Salis is a document available to read on EtoBox.
The chapter discusses the theory of cost as it relates to profit maximization. It defines cost of production as the input of human and material resources needed to produce a commodity. Cost of production is classified into fixed costs, which do not vary with output levels, variable costs, which vary depending on the amount produced, and total costs, which is the sum of fixed and variable costs. Average costs refer to the cost per unit of output, calculated by dividing total cost by total output.
- Author
- Muhammad Salis
- Language
- EN