Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | Briefly explain the concept of the cost
Briefly explain the concept of the cost function.
The functional relationship between the cost of production and the output is called the cost function. It is expressed as
C = f ( Qx )
Where,
C = cost of production
Qx =units of output x produced
In other words, the output-cost relationship for a firm is depicted by the cost function. The cost function depicts the least cost combination of inputs associated with different output levels.
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