Jessica's marginal cost for producing a pitcher of lemonade is $0.25. Therefore, $0.25 can also be called her:
A)marginal revenue.
B)equilibrium price.
C)reservation price.
D)producers surplus.

Question

Quizplus · Accepted Answer

Reservation price is the minimum price a seller is willing to accept for a product or service. In this case, Jessica's marginal cost of $0.25 is her reservation price for producing a pitcher of lemonade.

Jessica's Marginal Cost for Producing a Pitcher of Lemonade Is