In the context of analyzing economic efficiency, we can interpret the market supply curve to be showing
A)the average cost of producing the product at each output level.
B)the marginal revenue from each extra unit of the product.
C)the average variable cost of producing the product.
D)the marginal opportunity cost to produce each unit of the product.

Question

Quizplus · Accepted Answer

The market supply curve represents the marginal opportunity cost of producing each additional unit of the product. It reflects the minimum price at which producers are willing to supply an additional unit, which is essentially the cost of reallocating resources from the production of other goods to this product.

In the Context of Analyzing Economic Efficiency, We Can Interpret