Chap003.4 - Price ($ per slice) Quantity (1000s of slices...

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4 Chapter 3 - Supply and Demand: An Introduction Slide 19 Buyers and Sellers in Markets ± Will the opportunity cost of producing additional units of pizza increase or decrease as the quantity supplied of pizza rises? Chapter 3 - Supply and Demand: An Introduction Slide 20 Buyers and Sellers in Markets ± The Supply Curve z Sellers must receive a higher price to produce additional units of a product to cover the higher opportunity costs of each additional unit. Chapter 3 - Supply and Demand: An Introduction Slide 21 The Daily Supply Curve for Pizza in BCS Price ($ per slice) Quantity (1000s of slices per day) 4 2 3 81 21 6 Supply Chapter 3 - Supply and Demand: An Introduction Slide 22 The Daily Supply Curve for Pizza in BCS
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Unformatted text preview: Price ($ per slice) Quantity (1000s of slices per day) 4 2 3 8 12 16 Supply Horizontal Interpretation Shows the quantity produced for each price Chapter 3 - Supply and Demand: An Introduction Slide 23 The Daily Supply Curve for Pizza in BCS Price ($ per slice) Quantity (1000s of slices per day) 4 2 3 8 12 16 Supply Vertical Interpretation Shows the marginal cost (reservation price) for producing each additional unit Chapter 3 - Supply and Demand: An Introduction Slide 24 Market Equilibrium Sellers Reservation Price z The smallest dollar amount for which a seller would be willing to sell an additional unit, generally equal to marginal cost....
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