Question

Your marginal cost is $4.00 and the market price for your good is $2.00. At this market price, you are willing to supply goods.

Answer 1

ZERO

Step-by-step explanation:

Your answer would be zero because you are NOT making profit from your good. It is costing you $2.00 more to make the product, so all you are doing is losing income.

Answer 2

Nope , you should NOT be willing to supply the goods. If that is a true or false statement the answer would be False.

The simple definition of marginal cost the actual cost for increasing production by one unit. In order for you to remain profitable, your marginal cost should be lower than your selling price