Willingness to pay represents:
A) the point at which the benefit that a person will get from a good is equal to the benefit of spending the money on the next best alternative.
B) the opportunity cost of a good.
C) the buyer's reservation price.
D) All of these represent willingness to pay.

Question

Quizplus · Accepted Answer

Willingness to pay represents all of the given options. It is the point at which the benefit that a person will get from a good is equal to the benefit of spending the money on the next best alternative. It is also the opportunity cost of a good and the buyer's reservation price.

Willingness to Pay Represents