Homonym: cost (Price)
Cost refers to the amount of money required to purchase goods or services. It can include various factors such as production expenses, labor, and materials. Understanding cost is essential for businesses to set prices and manage budgets effectively.
In economics, cost can also refer to the opportunity cost, which is the value of the next best alternative that is forgone when making a decision. For example, if you spend money on a new phone instead of saving it for vacation, the cost of the phone includes the enjoyment you miss from the trip.