Table 4-2

-Refer to Table 4-2.The table above lists the marginal cost of cowboy hats by The Waco Kid,a firm that specializes in producing western wear.If the market price of The Waco Kid's cowboy hats is $40
A) The Waco Kid will produce four hats.
B) producer surplus from the first hat is $40.
C) producer surplus will equal $28.
D) there will be a surplus; as a result, the price will fall to $24.

Question

Table 4-2
 
-Refer to Table 4-2.The table above lists the marginal cost of cowboy hats by The Waco Kid,a firm that specializes in producing western wear.If the market price of The Waco Kid's cowboy hats is $40
A) The Waco Kid will produce four hats. 
B) producer surplus from the first hat is $40. 
C) producer surplus will equal $28. 
D) there will be a surplus; as a result, the price will fall to $24.

Quizplus · Accepted Answer

The Answer of Table 4-2
 
-Refer to Table 4-2.The table above lists the marginal cost of cowboy hats by The Waco Kid,a firm that specializes in producing western wear.If the market price of The Waco Kid's cowboy hats is $40
A) The Waco Kid will produce four hats. 
B) producer surplus from the first hat is $40. 
C) producer surplus will equal $28. 
D) there will be a surplus; as a result, the price will fall to $24.

Table 4-2 -Refer to Table 4-2.The Table Above Lists the Marginal Cost