The seller's cost of production is ?
Correct answer: B. the minimum amount the seller is willing to accept for a good
- A. none of these answers.
- B. the minimum amount the seller is willing to accept for a good
- C. the seller's producer surplus
- D. the maximum amount the seller is willing to accept for a good
- E. the seller's consumer surplus
Explanation
A seller's cost is the minimum amount the seller would accept because selling below cost would create a loss. The amount received above cost is producer surplus, not the cost itself.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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