If the Equilibrium Price in a Perfectly Competitive Market for Walnuts

question 39

Multiple Choice

If the equilibrium price in a perfectly competitive market for walnuts is $4.99 per pound,then an individual firm in this market can

• A)Not sell additional walnuts unless the firm lowers its price.
• B)Not sell additional walnuts at any price because the market is at equilibrium.
• C)Sell an additional pound of walnuts at $4.99.
• D)Sell more only by increasing its advertising budget.

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Definitions:

Nonexcludable

A characteristic of a good or service that does not allow the provider to prevent its use by individuals who have not paid for it.

Police Officers

Law enforcement personnel responsible for maintaining public order, preventing and detecting crime, and enforcing laws.

Marginal Cost

The cost of producing one additional unit of a good or service, crucial for optimizing production levels and pricing strategies.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the value they attribute to it.