What is one way to measure a firm's willingness-to-pay?
A)Marginal profit per unit of production
B)Value added analysis
C)Cost-benefit analysis
D)Input-output analysis
E)Sales-per-cost analysis

Question

Quizplus · Accepted Answer

Value added analysis measures the value that a firm adds to a product or service as it goes through the production process. This can be used to determine a firm's willingness-to-pay for certain resources, as the value added may be used to estimate the extra revenue generated by using those resources.

What Is One Way to Measure a Firm's Willingness-To-Pay