Cost Transparency Refers to the Ability of Consumers to Discover

question 35

True/False

Cost transparency refers to the ability of consumers to discover the actual costs merchants pay for products.

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Definitions:

Input

Resources (such as labor, materials, and capital) used in the production process to create goods or services.

Marginal Resource Cost

The additional cost incurred by a firm for using one more unit of input, like labor or raw materials.

Labor

The effort by workers to produce goods or services, typically measured in terms of hours worked or output produced.

Additional Unit

Refers to the next unit of a product or service to be produced or consumed, considered in analysis of costs and benefits.