You and a Friend Were Comparing Prices for the Same

question 45

Essay

You and a friend were comparing prices for the same service and noticed that wide price discrepancies existed.Explain why these wide price variations may exist for the same service.

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Definitions:

Economic Analysis

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints.

Marginal Benefit

The additional benefit obtained from consuming one more unit of a product or service.

Marginal Benefit

The additional benefit received from consuming one more unit of a product or service.

Total Benefit

The overall advantages or gains received from a good or service, including both tangible and intangible elements.