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Simply put: Forward resistance of the Collector to Emmitter PN Junction. Lower the On resistance, lesser is the power disspated by the transistor. Higher the ON resistance, more is the power dissipated by the device.
Ron= The resistance (Collector to Emitter) when the Transistor is in ON condition. As said in post #3, as much as this resistance is lesser as much as the transistor will produce lesser heat so better working and as much as this is high as much as the transistor will produce more heat so working will less efficient (for better understanding a short detail).
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