The minimum price a producer is willing to accept for the one hundredth bottle of water is________ .

Question

Quizplus · Accepted Answer

The minimum price that a producer is willing to accept for the one hundredth bottle of water is the producer's marginal cost of the one hundredth bottle of water. The reason being that the producer is already producing and selling water, therefore, the fixed costs have already been incurred. The marginal cost of producing one more bottle of water is the additional cost incurred, which the producer needs to cover to make the production of the one hundredth bottle profitable. So, the answer is option C, which is the producer's marginal cost of the one hundredth bottle of water.

The Minimum Price a Producer Is Willing to Accept for the One