The Value a Consumer Attaches to a Product or Service

question 45

Multiple Choice

The value a consumer attaches to a product or service is captured in the

• A) least price a consumer is willing to pay for it.
• B) consumer's maximum willingness to pay for it.
• C) expenses incurred by the firm in manufacturing it.
• D) difference between the price charged for it and the cost to produce it.

---

Definitions:

Marginal Cost

The boost in comprehensive expenditure that comes from the generation of one more unit of a product or service.

Socially Efficient

A situation in which an allocation of resources maximizes total social welfare, taking into account both the benefits and costs to society as a whole.

Marginal Costs

The increase in cost due to the production of an extra unit of a product or service.

Movie Theatres

Venues equipped with a screen for exhibiting films to audiences, providing a range of visual and auditory experiences.