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Economics 101: Cost | SterlingTerrell.net

Economics 101: Cost

 

What is cost in economics?

Cost is nothing other than all the expenses that are included in the production of a good or service.

The difference for this in economics is opportunity costs.

For example:

  • What income do you give up by going to college instead of working for those 4 years?
  • A factory making jeans is maybe giving up the option of producing t-shirts.
  • And part of the cost of marrying boy X is that you can't marry boy Y.
Total cost is this monetary cost, plus the opportunity cost.