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Author Question: What is the relationship between the marginal cost, minimum supply-price, and supply? What will ... (Read 69 times)

Marty

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on: Jun 29, 2018
What is the relationship between the marginal cost, minimum supply-price, and supply?
 
  What will be an ideal response?

Question 2

Holding everything else constant, an increase in the price of MP3 players will result in
 
  A) a decrease in the demand for MP3 players.
  B) a decrease in the quantity of MP3 players supplied.
  C) an increase in the supply of MP3 players.
  D) a decrease in the quantity of MP3 players demanded.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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tuate

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The marginal cost is the cost of producing an additional unit of a good. The marginal cost is the minimum price that producers must receive to induce them to offer one more unit of a good or service for sale. This minimum supply-price determines the supply of the good, so the supply curve is the same as the marginal cost curve.

Answer to Question 2

D


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