Asked by Fritcy Chavez on May 31, 2024
Verified
A producer's minimum acceptable price for a particular unit of a good:
A) is the same for all units of the good.
B) will,for most units produced,equal the maximum that consumers are willing to pay for the good.
C) equals the marginal cost of producing that particular unit.
D) must cover the wages,rent,and interest payments necessary to produce the good but need not include profit.
Marginal Cost
Marginal cost is the cost incurred by producing one additional unit of a good or service, reflecting changes in variable cost.
Minimum Acceptable Price
The lowest price at which a seller is willing to sell a product or service, often covering at least the costs of production.
Wages
Payments made to employees based on the hours worked or the amount of work done, often referred to as compensation for labor services rendered.
- Understand the concepts of producer and consumer surplus.
Verified Answer
BM
Benedek MolnárJun 01, 2024
Final Answer :
C
Explanation :
The minimum acceptable price for a particular unit of a good for a producer is their marginal cost of producing that unit. This is because if the price they receive for selling that unit is below the marginal cost, then the producer would incur losses on that unit. Therefore, they will only produce a particular unit of a good if they can sell it at a price that is equal to or greater than its marginal cost.
Learning Objectives
- Understand the concepts of producer and consumer surplus.