TOTAL FACTOR COST: The opportunity cost incurred when using a given factor of production to produce a good or service. Total factor cost should be compared with the related term, total cost. Total factor cost is the cost of using a specific factor, total cost is the cost of all factors of production. Total factor cost is predominately used in the analysis of the factor market. See also | total cost | opportunity cost | factors of production | factor market | average factor cost | marginal factor cost | factor price | perfect competition | imperfect competition | monopsony | market control |
