Value is
A) the price we pay for a good.
B) the cost of resources used to produce a good.
C) objective so that it is determined by market forces, not preferences.
D) the marginal benefit we get from consuming another unit of a good or service.
E) the difference between the price paid for a good and the marginal cost of producing that unit of the good.

Question

Quizplus · Accepted Answer

Value is the satisfaction or benefit derived from consuming a good or service. This is captured by the concept of marginal benefit, which refers to the additional satisfaction gained from consuming one more unit of a good or service. The idea here is that people are willing to pay for something because they perceive that it has value or utility for them; they are willing to give up other things that they could have in exchange for the satisfaction it provides. Therefore, value is subjective and depends on individual preferences, rather than being determined objectively by market forces or the cost of production.

Value Is