There are 3 competing products. Nike Air Zoom (luxury, running) selling for $192.73, Nike Revolution (running) for $61.02 and Allbirds Tree Dashers (running, sustainable) for $120.57. What is the price consumers are willing to pay for the sustainable attribute of the Allbirds? (Answer to 2 decimal places, so $25.32 would be 25.32).

Question

BlackTom AI · Accepted Answer

The question asks for the price consumers are willing to pay specifically for the sustainable attribute of the Allbirds Tree Dashers. To isolate the value of the sustainable attribute, we compare the Allbirds’ price to a baseline product that is similar but not marketed on sustainability.
First, identify the sustainable option: Allbirds Tree Dashers running, priced at 120.57.
Next, select a comparable non-sustainable running shoe as the baseline: Nike Revolution, priced at 61.02.
The implicit price premium for the sustainable attribute is the difference between these two prices: 120.57 − 61.02.
Calculate the difference: 120.57 minus 61.02 equals 59.55.
Thus, the willingness to pay for the sustainable attribute, holding other features constant, is 59.55 (to two decimal places).
Note that the other product in the list, Nike Air Zoom, is a higher-end luxury option at 192.73; it serves as a less direct baseline for sustainability value, since it’s a different category and price tier. The calculation above isolates the premium relative to the non-sustainable baseline price mentioned (Nike Revolution).
If you were to consider different baselines, the premium would change accordingly; the key idea is to compare a sustainable option with a non-sustainable, otherwise similar product to extract the incremental value attributed to sustainability.

FINA2720.MERGED.202610 Midterm Fall 2025- Requires Respondus LockDown Browser

查看解析

登录即可查看完整答案

类似问题

A firm's willingnesss to pay for a resource is

Willingness to pay (WTP) measures the minimum amount an individual is willing to pay in order to obtain a good or service.

Willingness to pay (WTP) measures the minimum amount an individual is willing to pay in order to obtain a good or service.

The willingness to pay is the maximum amount that a buyer will pay for a good and measures how much the buyer values the good.

Willingness to pay

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单