Asked by Dylan Gauthier on Jun 17, 2024

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Each seller of a product is willing to sell as long as the price he or she can receive is greater than the opportunity cost of producing the product.

Opportunity Cost

The relinquishment of possible advantages from alternate options upon making a choice.

  • Learn about the significance and strategies for measuring producer surplus.
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Tiffany AngelineJun 23, 2024
Final Answer :
True
Explanation :
Sellers are willing to sell a product as long as the price they receive is greater than the opportunity cost of producing it, because this ensures they are covering their costs and potentially making a profit. Opportunity cost represents the value of the best alternative use of resources, so receiving a price higher than this cost means the seller is making a rational economic decision.