The total value associated with a good is:
A)the amount of money paid for it.
B)the sum of all the marginal values of the good.
C)society's value of a good.
D)the production cost of making a good.

Question

Quizplus · Accepted Answer

The total value associated with a good is the sum of all the marginal values of the good, which represents the additional value gained by consuming or producing one additional unit of the good. This includes both the consumer surplus and producer surplus, and reflects the overall value that the good provides to society. The amount of money paid for it (A) only represents the price, which may not fully capture the true value of the good. Society's value of a good (C) is more subjective and may vary based on individual preferences and external factors. The production cost of making a good (D) only represents one aspect of the value and does not take into account the value derived from consumption.

The Total Value Associated with a Good Is