When a consumer compares the price of a good to the value ofthat good, he or she is really comparing:
A)the price of other substitute goods.
B)the value of the good to the costs associated with producing the good.
C)the value of the good to its opportunity cost.(True Answer )Correct
D)the price of the good to the value of other substitute goods.

Question

Quizplus · Accepted Answer

When a consumer compares the price of a good to the value of that good, he or she is really comparing the value of the good to its opportunity cost. Opportunity cost is the sacrifice made in terms of the best alternative that is forgone. Therefore, the consumer is weighing the value of the good against what else they could have spent their money on or the benefits they could have received by choosing an alternative option.

When a Consumer Compares the Price of a Good to the Value