Describe cost function, also mention the concept of cost. They are derived from the production function, which describes the an actable efficient methods of production at any one time. Both in short run and in long run, total cost is multivariate function. That is total cost is determined by many factors. Symbolically we may write the long- run function as c = f (x, t, k) And short run cost function as c = f (x, K = price of factors = fixed factors (s) Cost is the function of output c = f (x) There are many types of concepts where coats are concerned. Money cost: cost is not unique concepts on the contrary there are various types of costs. The most accepted is the money value or the money cost of production which means the total money involved in production of a commodity.
