To sell one more unit of output, the seller must make one more and sell itforO less than the price at which the last unit soldthe marginal revenueO the cost of the resources used to produce itO the same price as the last unit sold

Demand curve is downward sloping which shows the negative relationship between price and quantity…

To sell one more unit of output, the seller must make one more and sell it for less than the price at which the last unit sold O the marginal revenue O the cost of the resources used to produce it O the same price as the last unit sold

To sell one more unit of output, the seller must make one more and sell it for less than the price at which the last unit sold O the marginal revenue O the cost of the resources used to produce it O the same price as the last unit sold

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section7.5: Long-run Production Costs

Problem 1YTE

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Concept explainers

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.

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To sell one more unit of output, the seller must make one more and sell it
for
O less than the price at which the last unit sold
the marginal revenue
O the cost of the resources used to produce it
O the same price as the last unit sold

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