Explain the difference between the words "value," "price," and "cost."

What will be an ideal response?


Value refers to the marginal benefit of consuming one more unit of a good and is illustrated by the demand curve.
Price is determined in the market by the forces of supply and demand. Price is what the supplier receives for selling a good and is what the buyer pays when purchasing a good.
Cost refers to what must be given up to produce a good. The marginal cost of producing one more unit of a good is illustrated by the supply curve.

Economics

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Economics