Table 42 -Refer to Table 4

Table 4.2
$\begin{array}{|l|c|}\hline \begin{array}{c}\text { The Lethbridge }\\\text { Kid's Cowboy } \\\text { Hats }\end{array} & \begin{array}{c}\text { Marginal Cost } \\\text { (dollars) }\end{array} \\\hline \text { Ist hat } & \$ 24 \\\hline \text { 2nd hat } & 30 \\\hline \text { 3rd hat } & 38 \\\hline \text { 4th hat } & 46\\\hline\end{array}$
-Refer to Table 4.2.The table above lists the marginal cost of cowboy hats by The Lethbridge Kid, a firm that specializes in producing western wear.If the market price of The Lethbridge Kid's cowboy hats is $40

A) The Lethbridge Kid will produce four hats.
B) producer surplus will be equal to $16.
C) producer surplus will equal $28.
D) there will be a surplus; as a result, the price will fall to $24.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free