Discuss on Production Costs and Firm Profits

General objective of this article is to Discuss on Production Costs and Firm Profits. The firm’s primary objective in producing output is to maximize profits. The creation of output, however, involves certain costs that slow up the profits a firm could make. The relationship between costs and profits is therefore critical towards firm’s determination of the amount of output to produce. Here briefly discuss on Explicit and implicit costs, Accounting profits, economic profits, and normal profits. Finally analysis Fixed and variable costs, Total and marginal costs etc. with example and calculation.