Asked by Alejandro Bernal on Jun 12, 2024
Verified
At any quantity, the price given by the supply curve shows the cost of the lowest-cost seller.
Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity of the good supplied.
Lowest-Cost Seller
A firm or an individual that can produce or supply goods or services at the lowest price compared to competitors, often due to efficiencies, scale, or technology.
- Comprehend the role of supply curve in determining costs and producer surplus.
Verified Answer
NG
Nanci GonsalesJun 14, 2024
Final Answer :
False
Explanation :
The price given by the supply curve at any quantity represents the cost of the marginal seller, which is the cost of the highest-cost seller willing to sell at that price, not the lowest-cost seller.
Learning Objectives
- Comprehend the role of supply curve in determining costs and producer surplus.