The price a firm charges for a good or service is typically less than the value placed on that good or service by the customer. This is because
A) the customer's disposable income is significantly higher than what the market demands.
B) the customer captures some of that value in the form of a consumer surplus.
C) regulatory mechanisms ensure that the customer is not overcharged for products/services.
D) marketers implement psychological pricing tactics to ensure that customers perceive the prices to be low.

Question

Quizplus · Accepted Answer

The price a firm charges for a good or service is typically less than the value placed on that good or service by the customer. This is because the customer captures some of that value in the form of what economists call a consumer surplus.

The Price a Firm Charges for a Good or Service