Under perfect competition, the person that ends up with the marginal unit is the person that values it
A) at an amount above its price.
B) at an amount lower than its price.
C) exactly at its price.
D) above its marginal cost.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the price of a good is determined by the intersection of supply and demand. The person who ends up with the marginal unit values it exactly at its price, as this is the point where the quantity supplied equals the quantity demanded, and buyers are willing to pay the market price for the good.

Under Perfect Competition, the Person That Ends Up with the Marginal