Cost refers to all expenses incurred in producing goods or services. It includes both explicit costs (e.g., wages, materials) and implicit costs (e.g., opportunity cost).
Related terms
Fixed Costs: Fixed costs are expenses that do not change regardless of production level, such as rent for a factory space.
Variable Costs: Variable costs are expenses that change based on production level, such as raw materials needed to make products.
Total Cost Curve: The total cost curve shows how total cost changes as output increases. It typically has an upward slope due to diminishing returns.