The Amount of Money That a Customer Is Willing to Pay

question 151

Multiple Choice

The amount of money that a customer is willing to pay for a service is its _____________.

• A) value
• B) margin
• C) cost
• D) differentiation

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Definitions:

Price Decreases

A reduction in the selling price of goods or services.

Marginal Utility

The extra gratification or benefit received from using an additional unit of a product or service.

Video Game Rental

A service that allows consumers to borrow video games for a limited time period before returning them.

Perfectly Competitive Market

An economic scenario where numerous producers and consumers in the market have no ability to influence prices or product quality, allowing for free and fair competition.