Table 7-3 For Each of Three Potential Buyers of Oranges, the Table

question 99

Multiple Choice

Table 7-3
For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Alex, Barb, and Carlos are the only three buyers of oranges, and only three oranges can be supplied per day.

-Refer to Table 7-3.If the market price of an orange is $1.20,the market quantity of oranges demanded per day is

• A)1.
• B)2.
• C)3.
• D)4.

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Definitions:

Natural Monopoly

A market condition where due to high fixed costs or unique resources, a single firm can supply a product or service at a lower cost than any potential competitor, thus dominating the market.

Natural Monopoly

A market situation where a single supplier is most efficient in providing goods or services due to the high fixed or startup costs relative to the size of the market.

Per-unit Cost

The cost associated with producing a single unit of a product, including all variable and fixed costs divided by the total output.

Market Output

The total quantity of goods or services produced and offered for sale by firms in a particular market.