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

question 44

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 price of polo shirts decreases from $15 to $10,

• A) consumers will buy no polo shirts.
• B) the marginal cost of producing the third polo shirt will increase to $25.
• C) producer surplus will fall from $13 to $3.
• D) there will be a shortage of polo shirts.

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Definitions:

Consumerism

Public demand that a business consider the wants and needs of its customers in making decisions.

Public Demand

The total desire or need by the general public or specific market segments for particular goods or services.

Wants and Needs

The distinctions between the desires for non-essential items (wants) and the basic requirements necessary for survival or basic well-being (needs).

Social Audits

A formal evaluation of an organization's social, ethical, and environmental performance.