In a competitive free market, consumers decide not only whether their use of a good is worth more than the market price, but also whether their use of a good is worth more than:
A) all other uses of the good.
B) its inframarginal uses.
C) the good's highest-valued use.
D) its next highest-valued use.

Question

Quizplus · Accepted Answer

In a competitive free market, consumers evaluate whether their use of a good is worth more than its next highest-valued use, reflecting the opportunity cost of choosing one use over another.

In a Competitive Free Market, Consumers Decide Not Only Whether