Which of the following sets upper limit of price which a buyer is ready to pay?

Option 1 -> Product Cost determines the lower limit or floor price from the seller's perspective, not the upper limit from buyer's perspective.

Option 2 -> Utility and Demand reflects the perceived value and benefit a buyer gets from the product, which determines the maximum price they are willing to pay.

Option 3 -> Extent of competition in the market influences actual market prices and seller's pricing decisions, but not the buyer's maximum willingness to pay.

Option 4 -> Pricing Objectives are seller's strategic goals for setting prices, not factors determining buyer's payment capacity.

Hence, Option 2: Utility and Demand -> The utility or perceived value that a customer derives from a product sets the upper ceiling of what they are willing to pay. A buyer will not pay more than the benefit/satisfaction they expect to receive from the product, regardless of other market factors -> correct