What is meant according to economic principles

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When we say the cost of production is $50, what is meant according to economic principles?

a. A firm had to spend $50 in order to purchase the resources required to make the good or service.

b. A value to society of this good or service was $50, so its cost is said to be $50.

c. A firm could have made something else with the resources that was worth $50 in the market.

d. $50 represents the maximum willingness to pay from market participants.

Reference no: EM13745233

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