Which statement is false?

Which statement is false?

• A. Cost is the price paid for labor and materials to create a product.
• B. Price is the dollars expended to purchase a commodity.
• C. Market value is the price that will be paid by a willing buyer to a willing seller.
• D. Cost, price, and market value are always the same.

Answer: (D)

The statement that cost, price, and market value are always the same is false because these three terms refer to different concepts that do not necessarily align. Cost refers to the total expenses incurred in producing or acquiring a product, which includes labor, materials, and other related expenses. This amount may not reflect current market dynamics. Price, on the other hand, is the amount a buyer actually pays for a commodity at a specific time and can fluctuate based on market conditions, demand, or negotiation strategies. Market value is an estimate of what a property is worth in the current market, determined by what a willing buyer would pay a willing seller, typically influenced by comparable sales, the state of the economy, and other external factors. Thus, it is clear that while cost, price, and market value are interconnected in real estate and other markets, they do not have to be equal, highlighting the variability and complexity of economic transactions.

The statement that cost, price, and market value are always the same is false because these three terms refer to different concepts that do not necessarily align.

Cost refers to the total expenses incurred in producing or acquiring a product, which includes labor, materials, and other related expenses. This amount may not reflect current market dynamics.

Price, on the other hand, is the amount a buyer actually pays for a commodity at a specific time and can fluctuate based on market conditions, demand, or negotiation strategies.

Market value is an estimate of what a property is worth in the current market, determined by what a willing buyer would pay a willing seller, typically influenced by comparable sales, the state of the economy, and other external factors.

Thus, it is clear that while cost, price, and market value are interconnected in real estate and other markets, they do not have to be equal, highlighting the variability and complexity of economic transactions.