If You Pay a Price Exactly Equal to Your Willingness

question 108

Multiple Choice

If you pay a price exactly equal to your willingness to pay, then:

• A)your willingness to pay is less than your consumer surplus
• B).your consumer surplus is negative
• C)you have no consumer surplus
• D)you place little value on the good

---

Definitions:

Raw Materials

The basic materials from which products are made, typically not yet processed or manufactured.

Factory Payroll

The total compensation paid to all employees working within a manufacturing plant or factory.

Overhead Applicable

The portion of overhead costs that are assigned to a specific product, service, or job based on a predetermined rate or method.

Direct Materials

Raw materials that are directly traceable to the manufacturing process of a specific product and integral to its production.