Willingness to pay measures
A) the maximum price that a buyer is willing to pay for a good or service.
B) the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept for the good.
C) the maximum price a buyer is willing to pay minus the minimum price a seller is willing to accept.
D) the maximum price a buyer is willing to pay for a product minus the amount the buyer actually pays for it.
A
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A company's capital structure is made up of 40% debt and 60% common equity (both at market values). The interest rate on bonds similar to those issued by the company is 8%. The cost of equity is estimated to be 15%. The income tax rate is 40%
The company's weighted cost of capital is A) 11.5%. B) 12.2%. C) 10.9%. D) 8.9%.
Suppose that in 2009, private investment spending was $500 billion, government investment was $300 billion, and depreciation was $250 billion. How much did the capital stock increase in 2009 (assume there were no other changes that affect the capital stock)?
a. $300 billion b. $500 billion c. $550 billion d. $800 billion e. $1.05 trillion