economic cost

Synonyms

costs

Definition

Cost: The consumption of resources such as labour time, capital, materials, fuels, etc. as the consequence of an action. In economics, all resources are valued at their opportunity cost, which is the value of the most valuable alternative use of the resources. Costs are defi ned in a variety of ways and under a variety of assumptions that affect their value. The negative of costs are benefi ts and often both are considered together, for example, net cost is the difference between gross costs and benefits. (IPCC, 2014)