For a Price Taker,the Gain from Selling One More Unit

question 169

Multiple Choice

For a price taker,the gain from selling one more unit is

• A) its marginal cost.
• B) its sales price.
• C) its average variable cost.
• D) its average total cost.
• E) its average fixed cost.

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Definitions:

Disagreement Value

The worst outcome that a party is willing to accept before walking away from negotiations or a transaction.

Car Dealer

A business entity that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary.

Sale Price

The final price at which a product or service is sold after any deductions or promotions.

Bargaining Position

The relative power or advantage one party holds during negotiations, affecting their capacity to influence the terms.