Frank was known for driving 30 miles just to save a dollar on the price of his favorite beverage. Frank perceived price as ________ for a good or service, while most consumers recognize price as the ________ made to acquire a good or service.
A)the money paid; overall sacrifice
B)a variable cost; fixed cost
C)a fixed cost; variable payment
D)the overall sacrifice; monetary payment
E)the break-even amount; total cost

Question

Quizplus · Accepted Answer

Frank's behavior illustrates that he sees price primarily as the money he has to pay out (the money paid), whereas the general view of price is the total of all sacrifices made (time, effort, as well as money) to obtain a product or service (overall sacrifice).

Frank Was Known for Driving 30 Miles Just to Save