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Marginal willingness to pay ____________. is the consumer’s ability to pay for consumption of all units...

Marginal willingness to pay ____________.

  1. is the consumer’s ability to pay for consumption of all units of the good

  2. is the consumer’s additional willingness to pay for one more unit of the good

  3. is the consumer’s additional ability to pay for one more unit of the good

  4. is the consumer’s willingness to pay for consumption of all units of the good

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Answer #1

Marginal willingness to pay is the consumer's additional willingness to pay for one more unit of the good

Reason

Willingness to pay is the maximum amount for which a consumer is willing to pay for your product. Now marginal willingness to pay is the change in willingness to pay or additional willingness to pay for one more unit of the good.

Hence second option is correct

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