The Particular Price That Results in Quantity Supplied Being Equal

question 10

Multiple Choice

The particular price that results in quantity supplied being equal to quantity demanded is the best price because it

• A)maximizes costs of the seller.
• B)maximizes tax revenue for the government.
• C)maximizes the combined welfare of buyers and sellers.
• D)minimizes the expenditure of buyers.

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Definitions:

Minimum Level

The Minimum Level refers to the least amount, extent, or degree that is acceptable or achievable in a specific context.

Marginal Cost

The financial requirement for producing a supplementary unit of a product.

Average Total Cost

The total cost divided by the quantity of output produced, representing the average cost per unit of output.

Long-Run Cost Diagram

A graphical representation depicting the relationship between output and the long-term costs of production when all inputs can be varied.