A producer's minimum acceptable price for a particular unit of a good
A)is the same for all units of the good.
B)will, for most units produced, equal the maximum that consumers are willing to pay for the good.
C)equals the marginal cost of producing that particular unit.
D)must cover the wages, rent, and interest payments necessary to produce the good but need not include profit.

Question

Quizplus · Accepted Answer

The minimum acceptable price for a particular unit of a good is equal to the marginal cost of producing that unit. This is because the marginal cost represents the additional cost of producing one more unit of the good, and a producer would not be willing to sell a unit for less than it costs to produce it.

A Producer's Minimum Acceptable Price for a Particular Unit of a Good