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. As the market price of this good increases, the quantity produced by this seller will ________.
A)increase
B)decrease
C)stay the same
D)stay the same until the price rises above $6 per unit, and then it will increase

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. As the market price of this good increases, the quantity produced by this seller will ________. 
A)increase 
B)decrease 
C)stay the same 
D)stay the same until the price rises above $6 per unit, and then it will increase

Quizplus · Accepted Answer

The seller will continue to produce as the opportunity cost of producing an additional unit is less than or equal to price. Thus, as price increases, so will the quantity produced.

For a Given Seller, the Accompanying Figure Shows the Relationship