Discussion
What is meant by economic cost ?
Answer: B
Economic cost is accounting cost + opportunity cost of the self-owned factors.
Accounting (explicit) cost covers payments to outsiders, such as wages, rent and materials. Economic cost adds the implicit cost of the owner's own resources: the salary the owner could earn elsewhere, the rent on their own building, the interest on their own capital.
Explicit cost alone and the opportunity cost of own factors alone are each only one part of economic cost. 'Minimization of cost' is a goal, not a definition.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development