The Importance of Prices : Economics Homework Help by Classof1.com
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The Importance of Prices :
A price is the amount of money a buyer must pay to a seller for a good or service. Price is not always the same as cost. In economics, cost means opportunity cost—all that is sacrificed to buy the good. While the price of a good is a part of its opportunity cost, it is not the only cost. For example, the price does not include the value of the time sacrificed to buy something.
The Importance of Prices :
A price is the amount of money a buyer must pay to a seller for a good or service. Price is not always the same as cost. In economics, cost means opportunity cost—all that is sacrificed to buy the good. While the price of a good is a part of its opportunity cost, it is not the only cost. For example, the price does not include the value of the time sacrificed to buy something.