What a firm must pay for its inputs is referred to as its ________.

Question

Quizplus · Accepted Answer

The cost of production refers to what a firm has to pay for its inputs such as labor, raw materials, equipment, and other resources needed for production. This cost is a crucial component in determining the price and profitability of the products or services offered by the firm. Option A, production value, refers to the total value of the output of a firm, which includes both the cost of production and the profit earned. Option C, opportunity cost, refers to the value of the next best alternative forgone when choosing a particular course of action. Option D, loss in production, refers to a reduction in output or efficiency caused by factors such as equipment failure, labor strikes, or supply chain disruptions, which can increase the cost of production.

What a Firm Must Pay for Its Inputs Is Referred