As consumers, what are we paying for and why?
The need to explain the difference set me thinking; what are cost, price and value? Most of us seem to conflate cost and price. Some evidently have little concept of value.
To me:
- Cost is the sum total of the value of all inputs.
- Price is what is taken away (in Capitalism, generally expressed in terms of money, but could be other things like environmental harm).
- Value is what the rearrangement of inputs adds (to society, community, environment, economy, individual or whatever).
Deliberately broad and vague (and somewhat circular), but the best I can do.
And no, I’m not referring only to the NBN.
