The marginal seller is the seller who
A)cannot compete with the other sellers in the market.
B)would leave the market first if the price were any lower.
C)can produce at the lowest cost.
D)has the largest producer surplus.

Question

Quizplus · Accepted Answer

The marginal seller is the one who would leave the market first if the price were any lower. This could be because their costs are higher than other producers in the market, and they can only remain profitable if the price stays above a certain level. Therefore, they are the ones who are just barely profitable at the current price level, and any decrease would force them out of the market.

The Marginal Seller Is the Seller Who