For a given seller, the accompanying figure shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. What is this seller's reservation price for the 250ᵗʰ unit?
A)$2
B)$4
C)$8
D)$14

Question

For a given seller, the accompanying figure shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. What is this seller's reservation price for the 250ᵗʰ unit?   
A)$2 
B)$4 
C)$8 
D)$14

Quizplus · Accepted Answer

A seller's reservation price is the smallest dollar amount for which the seller would be willing to sell an additional unit, which is generally equal to the seller's opportunity cost of producing that unit.

For a Given Seller, the Accompanying Figure Shows the Relationship