What term refers to the amount of money a customer is willing to pay for a product?

The term that refers to the amount of money a customer is willing to pay for a product is price. Price is a fundamental concept in business, as it represents the monetary value assigned to a product or service that customers are willing to exchange for it. It plays a crucial role in influencing consumer behavior, market demand, and a company's revenue.

Understanding price is essential because it is based on various factors, including production costs, perceived value, competition, and market trends. It reflects both the seller's perspective in terms of covering costs and making a profit, and the buyer's perspective in terms of the perceived worth of the product compared to alternatives.

In contrast, cost refers to the expenses incurred by a business to produce a product, which may include materials, labor, and overhead. Value is a more subjective measure that considers the benefits and satisfaction gained from a product relative to its price, but it does not directly equate to the monetary amount customers are willing to pay. Expense typically refers to the outflow of money for operational purposes rather than pricing of products. Thus, price is the most accurate term that aligns with the question.