About Lesson
- There is direct relationship between production (output) and inputs (costs incurred in inputs).the cost incurred in production helps to know about the production possibility.
- In the competitive market, the price of product does not depend upon a single producer as the market requires huge number of products and increasing the product of one producer has no effect.
- Another option is the cost minimization. Production cost implies fixed and variable cost of production. Therefore, it is important to know how they effect in cost of production.
