Prices usually reflect a. both the value of a good to society and the cost to society of making the good. b. only the cost to society of making a good. c. only the value of a good to society. d. neither the value of a good to society nor the cost to society of making the good.

Question

Business

Wendy Kim

10 November, 01:22

Prices usually reflect a. both the value of a good to society and the cost to society of making the good. b. only the cost to society of making a good. c. only the value of a good to society. d. neither the value of a good to society nor the cost to society of making the good.

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Answers (1)

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Damari Atkinson · Answer 1

The correct answer is letter "A": both the value of a good to society and the cost to society of making the good.

Explanation:

Price is the monetary value of a good or service that consumers are willing to pay and producers are willing to accept. For companies, it represents the production costs of the good plus the unitary revenue they expect to obtain. For consumers, it is the value they provide to the good offered according to the type of need the good is destined to fulfill.