What does willingness to pay measure?
a) the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
b) the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept
c) the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept
d) the maximum amount that a buyer will pay for a good
Ans: d) the maximum amount that a buyer will pay for a good
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To evaluate the potential impact of changes to its SUV business, Ford Motor Company would use:
A) normative economic analysis. B) positive economic analysis. C) negative economic analysis. D) arbitrage analysis.
Historically, the U.S. steel industry has been a good example of
a. monopolistic competition b. a cartel c. a pure monopoly d. the kinked demand curve model of oligopoly e. the price leadership model of oligopoly
In the long run, a monopolistically competitive firm earns small economic profits.
Answer the following statement true (T) or false (F)
A nonrenewable resource:
A. can be replenished naturally over time. B. is used to regenerate an old piece of capital. C. is a production input that comes from the earth. D. All of these statements are true.