Which of the following describes the economic meanings of cost and price?
A) Cost is exchange worth, and price is dollar worth.
B) Cost is what must be given up to produce a good, and price is what a seller receives when the good is sold.
C) They are the same, and both mean what is received when a good is sold.
D) Cost refers to what the buyers pay for the good, and price refers to what sellers receive when the good is sold.
E) Cost refers to the price that buyers must pay to buy the good.

Question

Quizplus · Accepted Answer

Cost refers to the inputs, resources, and expenses needed to produce a good, while price is the amount of money that a buyer pays a seller to purchase the good. Cost is what the producer gives up, while price is what they receive in return. Therefore, option B is the correct statement.

Which of the Following Describes the Economic Meanings of Cost