In the Market for Good X There Are Three Buyers,Adam,Bill,and

question 214

Multiple Choice

In the market for good X there are three buyers,Adam,Bill,and Carolyn.Adam buys 3 units of good X at $4,Bill buys 7 units of good X at $4,and Carolyn buys 8 units of good X at $4.A point on the market demand curve consists of the following price-quantity combination:

• A) $4, 10
• B) $4, 18
• C) $4, 15
• D) $5, 8
• E) none of the above

---

Definitions:

Fixed Cost

Fixed cost refers to expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Sunk Cost

Expenditures that have already been incurred and cannot be recovered, which should not affect future decision-making.

Opportunity Cost

Represents the benefit that is missed or given up when an investor, individual, or business chooses one alternative over another.

Ticket Price

The cost associated with purchasing a ticket to gain entry to an event, performance, or mode of transportation.