The Following Table Displays the Reservation Values of Buyers and Sellers

question 197

Multiple Choice

The following table displays the reservation values of buyers and sellers in the market for notebooks, where each individual either wants to buy or sell one notebook.

-Refer to the table above.If the market for notebooks is perfectly competitive,the equilibrium price is ________.

• A) $2
• B) $3
• C) $4
• D) $5

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Definitions:

Long-Run Average Cost Curve

A graphical representation showing the lowest average cost of producing any output level when all inputs can be varied.

Plant Size

Plant Size pertains to the capacity or physical dimensions of a manufacturing or production facility.

Diseconomies of Scale

A situation where, as a firm increases production, the costs per unit increase instead of decreasing due to inefficiencies.

Output

The total amount of goods or services produced by a person, machine, or company within a certain period.