At all quantity levels the price given by the supply curve shows the cost of the lowest cost seller.

Name: At all quantity levels the price given by the supply curve shows the cost of the lowest cost seller.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The price given by the supply curve at any quantity level reflects the cost of the marginal seller, not necessarily the lowest cost seller. The marginal seller is the one who is willing to supply the last unit of the good at that price, which could be higher than the lowest cost seller.

At All Quantity Levels the Price Given by the Supply