What is considered an input price?

Question

In microeconomics?

Answer 1

Sort of like "cost"

Uses by public agencies

Public agencies use price data in planning agricultural programmes and ensuring that the allocation of available resources to different uses is consistent with the price system. Profit expectations from alternative agricultural development plans depend on the structure and behavior of both output and input prices. Both product substitution in domestic agriculture and planning of regional production programmes are facilitated by adequate price data. With their aido public agencies can make necessary adjustments to agricultural programmes if faced with price distortions, and can modify input-output price relationships to ensure the success of those programmes.

Public agencies need price data more importantly for formulating agricultural price policies, such as direct control of prices or indirect influence upon prices (through measures like subsidies, indirect taxation, import/export duties) with a view to stabilizing prices or attaining the desirable goals of adequate production, supply and distribution. Decisions on policies and measures on market intervention, output price support, regulation of the supply and demand of individual commodities and control of prices of agricultural inputs also depend on price data.