Step 1: Understand that an AC circuit is a type of electrical circuit where the current changes direction periodically.
Step 2: Know that power in an AC circuit can be divided into two types: real power (P) and apparent power (S).
Step 3: Real power (P) is the power that actually does useful work, like lighting a bulb or running a motor.
Step 4: Apparent power (S) is the total power that flows in the circuit, which includes both useful power and power that does not do any work.
Step 5: The power factor is a number that tells us how efficiently the electrical power is being used. It is calculated by dividing real power (P) by apparent power (S).
Step 6: The formula for power factor (PF) is PF = P / S.
Step 7: A power factor of 1 (or 100%) means all the power is being used effectively, while a lower power factor means less efficiency.