Table 7-11
The only four producers in a market have the following costs:
-Refer to Table 7-11. If the sellers bid against each other for the right to sell the good to a consumer, then the good will sell for
A)$50 or slightly more.
B)$100 or slightly less.
C)$150 or slightly less.
D)$200 or slightly more.

Question

Table 7-11
The only four producers in a market have the following costs: 
-Refer to Table 7-11. If the sellers bid against each other for the right to sell the good to a consumer, then the good will sell for
A)$50 or slightly more. 
B)$100 or slightly less. 
C)$150 or slightly less. 
D)$200 or slightly more.

Quizplus · Accepted Answer

The market price will be determined by the producer with the highest cost, which is $100 for producer C. Therefore, the good will sell for $100 or slightly less, as the other producers may choose to set lower prices to attract buyers.

Table 7-11 The Only Four Producers in a Market Have the Following