Examples of cost of production: 1. Sunk Cost and Future Cost 2. Actual Cost 3. Opportunity Cost 4. Explicit Cost 5. Implicit Cost 6. Money Cost and Real Cost 7. Private Cost and Social Cost 8. Selling Cost 9. Overhead Cost. Example # 1. Sunk Cost and Future Cost: Expenditure which has been incurred in past and which cannot be [...]
A choice between alternative techniques of production is a major problem in the planning for developing countries. This is because a particular choice of technique of production affects not only the magnitude of employment but also the rate of economic growth. Several alternative techniques of production are available to produce a commodity and these differ with regard to the amount [...]
In this article we will discuss about the arguments in favour of labour intensive and capital intensive techniques of production. Under-developed and undeveloped countries are always faced with many serious problems in so far as industry and economy are concerned. Labour Intensive Techniques of Production: Those who favour labour intensive techniques argue as under: (a) Providing of Employment: One of [...]