MV=PQ: A Resource for Economic Educators: Price vs. Cost

Monday, March 29, 2010

Price vs. Cost

Here's a comic that helps us differentiate between price and cost.

Frazz

This can be hard concept for anyone to get clear. Price does not equal cost. And that thought provides a setup for the next post.

2 comments:

Yaira said...: I thought this cartoon was funny. It was one of the first topics that we learned in class. The boy says he cannot "waste" his time. Although he is, by making things more complacated than what they need to be. The cost in this boys senario is time. As well as the father mentioned trying to find cheap gas. I believe this is an important lesson that many people are not aware of.; April 5, 2010 at 11:18 PM
Tim Schilling said...: Yaira,

You're right. Too many people think cost = price. They forget that there are other costs (time, other resources such as gas, etc.) that are not as visible. And there is the opportunity cost - what else could you have done with the money/time/other resources?; April 6, 2010 at 10:40 AM

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