Definitely a price rather than a cost, with OUP telling our authors they are authorised to reduce the fee to £8,330 plus VAT to enable UKRI to pay (for a monograph of up to 100k words) 🙄
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What a surprise! I notice also on their list of costs that they 'discount' the BPC for ECRs by 40%. Any reduction of these eyewatering fees is obviously welcome, but it does suggest as you say that they aren't covering essential costs.
And ofc they also get revenue for these OA books, eg. this one I looked up at random, in addition to being OA, is for sale in print at £117.50 a copy, or £75 for the ebook, or whatever they may charge libraries for the ebook - in addition to whatever BPC was charged:
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https://global.oup.com/academic/product/the-changing-german-voter-9780198847519?cc=gb&lang=en&