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Assume That the Supply Curve Is Horizontal Because Marginal Cost

Question 31

Multiple Choice

Assume that the supply curve is horizontal because marginal cost is constant at $10.If John,Robert,and Jimmy each value one compact disc at $20 but only Jimmy values a second compact disc,then the total value in this market is $35 if


A) Jimmy's value for a second compact disc is $0.
B) Jimmy's value for a second compact disc is $5.
C) Jimmy's value for a second compact disc is $10.
D) Jimmy's value for a second compact disc is $35.

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