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Why firms care about costs

Why firms care about costs

Costs are the money value of the resources used in production. They matter because profit depends on the gap between revenue and cost.

Profit=Total revenue−Total cost \text{Profit} = \text{Total revenue} - \text{Total cost} Profit=Total revenue−Total cost

3.3.2 Costs Lesson

  1. A Level
  2. /Economics
  3. /3.3.2 Costs