Table 4-6 -Refer to Table 4-6. the Table Above Lists the Marginal

question 35

Multiple Choice

Table 4-6

-Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $18,

• A) Marko's will produce four shirts.
• B) producer surplus from the first shirt is $18.
• C) producer surplus will equal $22.
• D) there will be a surplus; as a result, the price will fall to $7.

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Definitions:

National Income

The total amount of money earned within a country from production and services over a specific time period.

Opportunity Cost

Dismissing potential benefits from other possible choices by focusing on one.

Scarce Resources

Natural or human resources that are limited in supply and cannot fulfill all wants and needs due to their finite availability.

Free Lunch

An idiom expressing the idea that it is impossible to get something for nothing; in economics, it refers to the impossibility of getting a benefit without a cost.