Say and Cantillon launched the notion of subjective utility. This states that:
A) the utility the customer perceives affects the value and thus the price of a good
B) the subjective should not be taken into consideration when setting the price
C) price is a subjective experience
D) production costs define the price of a good

Question

Quizplus · Accepted Answer

The notion of subjective utility introduced by Say and Cantillon suggests that the value and price of a good are determined by the utility perceived by the customer. This means that customer's subjective perception influences the price and value of a good, implying that pricing strategies should take the customer's perception into account. Therefore, option A is the correct choice. Options B, C, and D are incorrect because they either contradict or do not align with the notion of subjective utility.

Say and Cantillon Launched the Notion of Subjective Utility