If you are a seller making decisions according to the rational rule, you will:
A)earn some producer surplus on every unit sold.
B)earn producer surplus on all except the last unit sold.
C)ensure that all consumers earn consumer surplus.
D)ensure that consumers lose maximum surplus in order to lower producer surplus.

Question

Quizplus · Accepted Answer

According to the rational rule for sellers, you should continue selling until the marginal cost equals the marginal benefit (price). Therefore, you earn producer surplus on all units except the last one, where the price equals the marginal cost.

If You Are a Seller Making Decisions According to the Rational