The Benefits That a Customer Derives from Having Access to or Owning

question 1

Multiple Choice

The benefits that a customer derives from having access to or owning and using a product minus the costs of acquiring that product is BEST defined as:

• A) reciprocity.
• B) market price.
• C) latent costs.
• D) customer value.
• E) perceived price.

---

Definitions:

Market Forces

The natural forces of supply and demand that govern the functioning of the free market, determining prices and production levels.

Rival

Describes a good or resource that cannot be consumed by more than one person or entity at the same time without diminishing its availability to another.

Nonexclusive

A property of a good or service where one person's use does not diminish availability to others.

External Benefit

A benefit that results from an economic activity which accrues to unrelated third parties.