One problem with assuming that people's willingness to pay is a measure of the marginal benefit they would receive from the product is that:
A)marginal benefit reflects more than just willingness to pay.
B)a person's perceived marginal benefit from a product is not related to their willingness to pay.
C)willingness to pay reflects ability to pay as well as marginal benefit.
D)marginal benefit is negatively rather than positively related to willingness to pay.

Question

Quizplus · Accepted Answer

Willingness to pay is influenced not only by the marginal benefit a person expects to receive from a product but also by their ability to pay. This means that two individuals could derive the same marginal benefit from a product, but their willingness to pay could differ significantly due to differences in their financial resources.

One Problem with Assuming That People's Willingness to Pay Is