Market Cost

Posted in Marketing and Strategy Terms, Total Reads: 3661

Definition: Market Cost

Market Cost is the economic price at which a good or service is offered in the market.

In the realm of economics, market price and market value are equal only under conditions of market efficiency and equilibrium. Market pricing is mainly determined by the relation between supply and demand. The relation between price and supply is usually negative meaning that the higher the price shoots up, the lower amount of supply is demanded. Conversely, lower the price, higher the amount demanded. Market cost could be taken as the financial expression of the value of the offering.

For instance, if the market cost of a commodity is Rs. 200, then it means that two hundred rupees is the value of resources expended to bring it to the marketplace.

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