WHAT IS 'COST'?
AKSIOM ALL COSTS ARE LABOR COSTS MARKET PRICE AFFECT COSTS, NOT VICE VERSA People, think about, it, just think What is cost? How much does one lbs of tomato cost? Answer: $2 Wrong answer; tomato is for free, tomato doesn't need to get paid It is the HUMAN producing the tomato who wants to get paid. That is the cost, what the human demands. Let's take crude oil as example. Current price is $94/barrel. What does this mean? Well, it means that AS LONG AS THE EXTRACTION TECHNOLOGY EXISTS, every human involved from extraction (owner, driller etc) to refinery (owner, workers etc) to the gas pump (owner, workers etc) want to get paid. THAT IS THE COST. Of course, the owner of the technology wants his cut also. Crude oil in itself is for free from God (or Nature for the non-religious). CONCLUSION ALL COSTS ARE LABOR COSTS So, when people say: Cost of 1 barrel of crude oil is $40, it means that the owner of the technology, the owner of the land, workers, from