If a firm is willing to supply the 1,000th unit of a good at a price of $23 or more,we know that $23 is the
A) highest price the seller hopes to realize for this output.
B) minimum price the seller must receive to produce this unit.
C) average price of all the prices the seller could charge.
D) price that sets the marginal benefit equal to the price.
E) only price for which the seller is willing to sell this unit of the good.

Question

Quizplus · Accepted Answer

If the firm is willing to supply the 1,000th unit of a good at a price of $23 or more, it means that the production costs of this unit are at least $23. Therefore, $23 is the minimum price the seller must receive to produce this unit.

If a Firm Is Willing to Supply the 1,000th Unit