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.
Answer: C
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Refer to Figure 4.1. The dominant strategy for Alvin is
A) Top B) Bottom C) both Top and Bottom D) Alvin does not have a dominant strategy.
A rent ceiling creates a shortage. As a result, which of the following occurs?
A) only a loss of consumer surplus for tenants B) only a loss of producer surplus for landlords C) a loss of both consumer and producer surplus D) a gain of both consumer and producer surplus
In recent years, "country risk analysis" has become an important part of international business. What do we mean by "country risk"? Briefly explain the factors that are involved in a country risk analysis
What will be an ideal response?
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.