Managerial Economics (MindTap Course List)
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

  1. a. the amount of money he or she used to pay for a good.
  2. b. the amount of money he or she is willing to pay for it.
  3. c. the amount of money he or she has to spend on goods.
  4. d. None of the above.
Expert Solution & Answer
Check Mark
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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