what do you mean by costs? how many types are costs in economics.

Hello,

Cost is the monetary value of goods and services that producers and consumers purchase. In a basic economic sense, cost is the measure of the alternative opportunities foregone in the choice of one good or activity over others.

The types of Costs in Economics are:

1. Fixed Costs

It is the cost which don’t vary with changing output.

2. Variable Costs

It is the cost which depend on the output produced.

3. Semi - Variable Costs

4. Marginal Costs

It is the cost of producing extra units.

5. Opportunity Costs

6. Economic Costs

It is the sum of both actual direct cost and opportunity costs.

7. Accounting Costs

It is the he monetary outlay for producing a certain good.

8. Sunk Costs

These are the costs have been incurred and cannot be recouped.

9. Avoidable Costs

These are the costs that can be avoided.

10. Explicit Costs

These are the costs that a firm directly pays

11. Implicit Costs

These are opportunity costs.

12. Social Costs

This is the total cost of a society.

12. External Costs

These are the total cost imposed on third party.

13. Private Costs

These are the costs that a person pays for himself / herself.

14. Social Marginal Costs

This is the total cost to society of producing one extra unit.

Best Wishes.

Hi there!

Greetings!

Let me describe you that cost is the sacrifice made, usually measured by the resources given up, to achieve a particular purpose. A sacrifice made in order to obtain some goods or services.

Types of costs:-

• Fixed Costs (FC)
• Variable Costs (VC)
• Semi-Variable Cost
• Total Costs (TC)
• Marginal Cost
• Opportunity Cost
• Economic Cost
• Accounting Cost
• Avoidable Cost
• Explicit cost
• Implicit cost

These are the types of cost and I hope this information will help you. So keep learning keep growing.

All the best!

Thanks.

Hello, Arsh!

Economic cost is the combination losses of any goods that have a value attached to them by any one individual. Economic cost is used mainly by economists as means to compare the prudence of one course of action with that of another. The factors to be taken into consideration are money, time, and other resources.

Hope this helps!