A firm incurs $100 to manufacture an office table. It fixes the market price of the table as $250, and discounts the price to $200. However, the maximum a person is willing to pay for it is $180. What is the amount of total perceived consumer benefits in this scenario?
A) $250
B) $200
C) $180
D) $100

Question

Quizplus · Accepted Answer

The amount of total perceived consumer benefits equals the maximum willingness to pay, which in this case is $180.

A Firm Incurs $100 to Manufacture an Office Table