Total cost refers to the market value of all resources used in producing a good or service.

Question

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Total cost is the sum of all expenses incurred in producing a good or service, including both explicit (e.g. wages, raw materials) and implicit costs (e.g. opportunity cost of using owned resources). It is measured at market value, reflecting the amount that would need to be paid to acquire those resources on the open market.

Total Cost Refers to the Market Value of All Resources