Willingness to pay depends on marginal benefit, not total benefit.

Name: Willingness to pay depends on marginal benefit, not total benefit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Willingness to pay measures the maximum amount a consumer is willing to pay for an additional unit of a good or service, which is determined by the marginal benefit or utility of that additional unit. It is not affected by the total benefit or utility from consuming all units of the good or service.

Willingness to Pay Depends on Marginal Benefit, Not Total Benefit