A seller is willing to sell 5 units of a good at a minimum price of $1 per unit.The reservation value of the seller in this case is ________.
A) $1
B) $5
C) $6
D) $10

Question

Quizplus · Accepted Answer

The reservation value of the seller is the minimum price at which the seller is willing to sell the good. In this case, the seller is willing to sell at a minimum price of $1 per unit, so the reservation value of the seller is $1. Therefore, the correct choice is A.

A Seller Is Willing to Sell 5 Units of a Good