NTA UGC/NET/SET/JRF Commerce Paper 2 - 2024, | 2023 Fully solved paper | 4th Edition, Includes 2023 Solved Papers |

THEORY OF COSTS, MARKET FORMS AND PRICING STRATEGIES

COSTS AND ITS TYPES

In economics, cost can be defined as a monetary valuation of efforts, material, resources, time and utilities consumed, risks incurred, and opportunity forgone in the production of a good or service. In a core economic sense, cost is the measure of the alternative opportunities foregone in the choice of one good or activity over others. This fundamental cost is usually referred to as opportunity cost.

Costs are crucial to set prices in the business. They are actually prices paid for production and the opportunity cost attributable to factors already owned. Pricing of products or services is required in all situations whether there are public goods or private good. Let’s ...