Willingness to pay represents:
A)the point at which the benefit that a person will get from a good is equal to the benefit of spending the money on another alternative.
B)the opportunity cost of a good.
C)the buyer's reservation price.
D)All of these represent willingness to pay.

Question

Quizplus · Accepted Answer

Willingness to pay represents all of the choices listed. It is the point at which a person's benefit from purchasing a good is equal to the benefit of spending the money on another alternative (A), it represents the opportunity cost of the good (B), and it is the maximum price a buyer is willing to pay for a good, which is also known as the buyer's reservation price (C). Therefore, all the choices represent willingness to pay.

Willingness to Pay Represents