Cost
A) is what the buyer pays to get the good.
B) is always equal to the marginal benefit for every unit of a good produced.
C) is what the seller must give up to produce the good.
D) is greater than market price, which results in a profit for firms.
E) means the same thing as price.

Question

Quizplus · Accepted Answer

Cost is the amount that the seller must give up or expend in order to produce the good, including expenses such as labor, materials, and overhead. It may or may not be equal to the price paid by the buyer, and it is not necessarily greater than the market price. Marginal benefit is a measure of the additional utility that a consumer derives from each additional unit of a good consumed, and it is not the same thing as cost.