This section is exceptionally specialized and loaded with definitions and diagrams. The majority of the material is not extremely scientific. Be that as it may, it might be harder for a few understudies to see the importance of this material. Along these lines, this PowerPoint starts with a short conceptualizing movement on the following slide. This action solicits understudies to think from a few costs that a certifiable firm really confronts and the sorts of choices that are influenced by these expenses. Having understood that expenses are imperative to business choices, understudies ought to be more propelled to take in the ideas in this section. It may likewise be beneficial to call attention to that material in this part gives the establishment to the accompanying four sections. In those four parts, we will perceive how firms in various market structures utilize the cost ideas acquainted here with settle on choices about how much stuff to deliver, what cost to charge, et cetera. Discovering that material will be much less demanding for understudies on the off chance that they have a decent handle of the material in this section. Implicit costs do not involve a cash outlay, yet are just as important as explicit costs to firms’ decisions. Accounting profit is revenue minus explicit costs.  Economic profit is revenue minus total (explicit + implicit) costs. The production function shows the relationship between output and inputs.