The money spent on its production is gone and is now attached to something else. If the baker has overestimated his market, he must take what he can. The baker's costs are totally immaterial to the consumer. The consumer simply does not care. If the baker refuses to sell at the lower price, then that is now his cost.
Costs are forgone alternatives and always involve choice.
Once the alternative has been sacrificed it no longer has any 'influence on price'. Money costs to the entrepreneur only equal opportunity costs when he plans the investment. Once his money costs are ' sunk' they must be considered irretrievable spent. Bygones are always bygones. Our definition of cost now brings us to his peculiar view that labour has become a fixed cost that breaks the link between costs and price.