The maximum price a consumer is willing to pay for a second bottle of water is _________ _.

Question

Quizplus · Accepted Answer

The maximum price a consumer is willing to pay for a second bottle of water is the consumer's marginal benefit of a second bottle of water, which is the additional benefit the consumer receives from consuming one extra unit of the good. This is because the consumer will only purchase an additional unit if the benefit they receive is greater than or equal to the price they pay, and the maximum price they are willing to pay is the point at which their marginal benefit equals the price.

The Maximum Price a Consumer Is Willing to Pay for a Second