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Why cost being borne by customer?

Updated: 9/23/2023
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Q: Why cost being borne by customer?
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Is cost of packaging being borne by consumer?

Cost of packaging is included in the price of the product and hence is borne by the ultimate consumer.


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The determination of which costs are born by the consumer of manufacturer often depends on the position of the company. If they are trying to increase sales by undercutting the competition they will often bear more of the cost. However, eventually all costs will have to be borne by the consumer in order for the company to stay in business.


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A negative externality or spillover cost occurs when?

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The cost should be born by someone else. How do you spell born in this instance?

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Private costs are borne by consumers of a good while social costs are borne?

Private costs can also be borne by producers. For example: A consumer buys a unit of good, the private cost of him is mainly the price of the good. A producer supplies a unit of good, the private cost of it is the cost of production. There should be no definite answer for "who bears the private cost?". Social costs = Private costs + External costs. It's born by both consumers and producers. Look up external costs in the internet.


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Value based pricing is based on percieved value of goods and services in view of customer. A marketer look at the price being offered to customer that how a customer is percieving the value of goods or services. It is price where all cost of product has been accounted and a fair judgment about percieved value for customer in market.


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