The difference between what customers are willing to pay for a firm's products or services and the full economic cost of these products or services is the
A)value proposition.
B)cost advantage.
C)economic value.
D)competitive advantage.

Question

Quizplus · Accepted Answer

The difference between what customers are willing to pay and the full economic cost is known as economic value. This represents the perceived value of the product or service to the customer, beyond the actual economic cost of producing it. This is different from a cost advantage which refers to a lower cost of production compared to competitors, and from a competitive advantage which refers to any advantage a firm has over its competitors, including cost advantages, differentiated products, or superior marketing capabilities. The value proposition refers to the unique benefits that a firm's product or service offers to customers.

The Difference Between What Customers Are Willing to Pay for a Firm's