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Price Cannot Fall So Low That Some Sellers Choose to Supply

question 155

True/False

Price cannot fall so low that some sellers choose to supply a quantity of zero.


Definitions:

Marginal Costs

The increase in cost resulting from the manufacture of one plus unit of a good or service.

Fixed Costs

Costs that do not change with the level of output, remaining constant regardless of the scale of production or services provided.

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equal to the price of the good.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or output in a business.

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