Knowing the Cost of Production,which Decision Will a Seller Mostly

question 127

Multiple Choice

Knowing the cost of production,which decision will a seller mostly likely make

• A)A seller would be eager to sell her product at a price higher than her cost and refuse to sell her product at a price equal to her cost.
• B)A seller would refuse to sell her product at a price lower than her cost and willing to sell her product at a price equal to her cost.
• C)A seller would be eager to sell her produce at a price higher than her cost and refuse to sell her product at a price lower than her cost.
• D)A seller must be willing to sell her product at any price since sellers cannot set the price for their product.

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Definitions:

Market System

An economic system in which market forces of supply and demand guide the production of goods and services and their distribution.

Property Rights

The theoretical and legal ownership rights assigned to the use, control, and transfer of property, which can be applied to both physical and intellectual properties.

Central Planning

An economic system where decisions regarding production and investment are embodied in a comprehensive plan formulated by a central authority, typically the government.

Laissez-faire

Laissez-faire is an economic philosophy advocating minimal government intervention in the business affairs of private individuals and enterprises.