A person's willingness to pay for a good is based on
A)the availability of the good.
B)the marginal benefit that an extra unit of the good would provide for that person.
C)the marginal cost of producing an extra unit of the good.
D)esoteric factors, the study of which lies beyond the boundaries of economics.

Question

Quizplus · Accepted Answer

A person's willingness to pay for a good is based on the marginal benefit that an extra unit of the good would provide for that person, meaning how much additional satisfaction or utility the person would derive from consuming one more unit of the good. This willingness to pay is influenced by factors such as the person's income, preferences, and alternatives available in the market.

A Person's Willingness to Pay for a Good Is Based