A Consumer's Willingness to Pay Directly Measures

question 62

Multiple Choice

A consumer's willingness to pay directly measures

• A)the extent to which advertising and other external forces have influenced the consumer's preferences.
• B)the cost of a good to the buyer.
• C)how much a buyer values a good.
• D)consumer surplus.

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Definitions:

Lunch Special

A discounted or specially designed meal offered by restaurants during lunch hours to attract customers.

Markup Pricing

A pricing method in which a certain amount is added to the cost of the product, to set the final price; also called cost-plus pricing.

Profit Margin

A financial metric that measures the amount by which revenue from sales exceeds costs in a business, expressed as a percentage of total sales.

Break-Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.