Suppose Larry,Moe,and Curly are bidding in an auction for a mint-condition video of Charlie Chaplin's first movie.Each has in mind a maximum amount that he will bid.This maximum is called
A)a resistance price.
B)willingness to pay.
C)consumer surplus.
D)producer surplus.

Question

Quizplus · Accepted Answer

Larry, Moe, and Curly's maximum amount they are willing to bid is their willingness to pay, which is the highest amount they value the video at. Therefore, the correct choice is B, willingness to pay.

Suppose Larry,Moe,and Curly Are Bidding in an Auction for a Mint-Condition