« previous next »

Author Question: What is the relationship between the marginal cost, minimum supply-price, and supply? What will ... (Read 74 times)

Marty

  • Hero Member
  • *****
  • Posts: 553
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
Buy Test-Bank


tuate

  • Sr. Member
  • ****
  • Posts: 332
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

An Oil-dependent World— Supply and Demand Driven An Oil-dependent World— Supply and Demand Driven
Alan Price - Poor People Alan Price - Poor People
Typical Startup Cost Categories Typical Startup Cost Categories
Relationship between Latitude and Income per Capita Relationship between Latitude and Income per Capita
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
Relationship between the number of amino acid substitutions Relationship between the number of amino acid substitutions
Video: Interview with an Anorexic Woman (Part 1 of 2)

For a complete list of videos, visit our video library