Question

How do the concepts of the customer’s willingness to pay, the firm’s costs and the market...

How do the concepts of the customer’s willingness to pay, the firm’s costs and the market price relate to competitive advantage?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Willingness to pay is defined as the maximum price a customer would like to pay for a good or service. The maximum willingness to pay depends on the price, cost incurred by firm, quality, value etc.
Cost is directly related to the competitive advantage, lesser the cost, more would be competitive advantage and hence price can be decided accordingly to stay competitive in market. With the lower cost and price with the quality standard requirements, consumer would be willing to pay more.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How do the concepts of the customer’s willingness to pay, the firm’s costs and the market...
How do the concepts of the customer’s willingness to pay, the firm’s costs and the market price relate to competitive advantage?
A firm can develop competitive advantage by a. raising willingness to pay a great deal with...
A firm can develop competitive advantage by a. raising willingness to pay a great deal with only slight increases in costs. b. developing large cost savings with only slight decreases in customer willingness to pay. c. producing superior products at lower costs. d. None of the answers is correct e. All of the answers are correct
- What is the relationship between opportunity costs and willingness to pay?? - If a company...
- What is the relationship between opportunity costs and willingness to pay?? - If a company in a competitive operates at a loss, what determines if they continue producing or stop producing? - What concept does the following situation illustrate? A coal-fired power plant emits excessive carbon dioxide. In its optimization, the amount of carbon dioxide that it emits is not part of either its benefits or costs. However, increased carbon dioxide emissions does cause major problems for earth’s climate...
For any competitive market, why the supply curve is closely related to the firm’s costs of...
For any competitive market, why the supply curve is closely related to the firm’s costs of production in that market?
What is willingness to pay? What does it mean? How is it measured (in relation to...
What is willingness to pay? What does it mean? How is it measured (in relation to what standard object from microeconomic theory)? What data do we need? What are limitations of WTP as a concept? Why is it challenging to measure WTP for environmental g/s? What are the two broad non-market valuation methods for measuring WTP in the environmental context? What are the five categories of costs measured in BCA? What are the three methods for measuring costs? What determines...
How is the concept of willingness to pay tied to environmental benefits? How is it tied...
How is the concept of willingness to pay tied to environmental benefits? How is it tied to value? Provide specific examples to illustrate your responses.
Assume market analysts are able to accurately estimate consumer’s willingness to pay for a given public...
Assume market analysts are able to accurately estimate consumer’s willingness to pay for a given public good or service. Explain why voluntary contributions are unlikely to result in sufficient contributions to pay for provision of the Pareto optimal level of the good or service.
Below are data on the marginal willingness to pay (MWTP) of a consumer of organic apples....
Below are data on the marginal willingness to pay (MWTP) of a consumer of organic apples. Note that the MWTP to go from zero (0) to 1 kg per week is $5.00. Consumption level (apples/week, kg) MWTP ($) 0 5.00 1 4.00 2 3.20 3 2.60 4 2.20 5 1.80 6 1.50 What is the consumer’s total willingness to pay at a consumption level of 4 apples? Illustrate the total willingness to pay using a diagram. If the actual price...
What is the common law? How do the concepts of stare decisis and precedent relate to...
What is the common law? How do the concepts of stare decisis and precedent relate to the common law?
As a firm in a competitive market, how do you set the price of your good...
As a firm in a competitive market, how do you set the price of your good to maximize your profit? (you know your marginal costs and market price)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT