Real price
This is the current revision of Real price as edited by JamesWilson (talk | contribs) at 12:03, August 27, 2011. This URL is a permanent link to this version of this page.
Real price is the opportunity cost of a good or service. The real price of a good which costs $5 is the best alternative use of that $5. Even things that we often consider free have a real price. For example, the real price of watching "free" television for an hour is the money you could have earned by working in that hour, or the money you could have enabled yourself to earn in the future by studying.