Managerial Economics (MindTap Course List)
4th Edition
ISBN: 9781305259331
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 2, Problem 1MC
An individual’s value for a good or service is
- a. the amount of money he or she used to pay for a good.
- b. the amount of money he or she is willing to pay for it.
- c. the amount of money he or she has to spend on goods.
- d. None of the above.
Expert Solution & Answer
To determine
The value of a good or service.
Explanation of Solution
The value of money is determined in terms of the amount that an individual is willing to pay for a good and service. Thus, the term ‘value’ indicates the willingness to buy by an individual and pay for those goods and services. Thus, option ‘b’ is correct.
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