Final answer:
The term 'cost' describes a manufacturer's expenses for goods or services, crucial for pricing decisions and profitability.
Explanation:
Cost is the term that describes what a manufacturer spends for goods or services. It includes expenses such as materials, labor, and overhead costs.
For example, if a car manufacturer spends money on steel, tires, and salaries for workers, all these expenses contribute to the cost of producing a car.
Understanding costs is crucial for firms to make pricing decisions and determine their profitability in the market.
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