If all consumers pay the same price for a good, then that price represents the value they place on the last unit purchased.

Question

Quizplus · Accepted Answer

This is because in a market where all consumers pay the same price for a good, the price represents the marginal utility or value they place on the last unit purchased. However, it is important to note that in reality, consumers may have different preferences and willingness to pay for a good, which can lead to price discrimination and different prices for different consumers.

If All Consumers Pay the Same Price for a Good