Production Cost and

z
Firm Profits
z
PRODUCTION COST

 Refers to the cost a company incurs from

manufacturing a product.

 Also refers to all cost direct or indirect cost

businesses face in manufacturing a product.
z

TYPES OF COST
z
FIXED COST

 Are businesses expenses that are not dependent on

the level of goods or services produced by the
businesses. Also it is a cost that do not change even
if the production decrease or increase.
z
Variable cost
z
z
z
z
z
z