The marginal seller is the seller
a. for whom the marginal cost of producing one more unit of output is the lowest among all sellers, and the marginal buyer is the buyer for whom the marginal benefit of one more unit of the good is the highest among all buyers.
b. who supplies the smallest quantity of the good among all sellers, and the marginal buyer is the buyer who demands the smallest quantity of the good among all buyers.
c. who would leave the market first if the price were any lower, and the marginal buyer is the buyer who would leave the market first if the price were any higher.
d. who has the largest producer surplus, and the marginal buyer is the buyer who has the largest consumer surplus.
c
You might also like to view...
Intermediaries, known as middlemen, specialize in
A) reducing transaction costs. B) negotiating high prices for sellers. C) negotiating low prices for buyers. D) encouraging consumers to buy goods on credit, rather than with cash.
If the Fed were to increase the discount rate so that it was much higher than the federal funds rate, eventually
A) reserves would decrease and the money supply would decrease. B) reserves would increase and the money supply would increase. C) reserves would decrease and the money supply would increase. D) reserves would increase and the money supply would decrease. E) there is no impact on reserves or the money supply.
Suppose Japan exports televisions to the United States and imports sugar from Argentina. This situation suggests
a. Japan has a comparative advantage relative to the United States in producing televisions, and Argentina has a comparative advantage relative to Japan in producing sugar. b. Japan has a comparative advantage relative to the United States in producing sugar, and Argentina has a comparative advantage relative to Japan in producing televisions. c. Japan has an absolute advantage relative to the United States in producing televisions, and Argentina has an absolute advantage relative to Japan in producing sugar. d. Japan has an absolute advantage relative to Argentina in producing sugar, and the United States has an absolute advantage relative to Japan in producing televisions.
Which of the following are not counted when we compare a family's income to the poverty line?
a. Cash payments when a worker becomes unemployed. b. Cash welfare payments such as from social security. c. In-kind transfers such as food stamps, Medicaid, and public housing. d. Both In-kind transfers such as food stamps, Medicaid, and public housing, and cash welfare payments such as from social security above are correct.