Table 42 -Refer to Table 4

question 62

Multiple Choice

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.

---

Definitions:

Federal Exemptions

Legal provisions that allow individuals or entities to exclude certain assets or incomes from taxation under federal law.

Chapter 7

A provision of the Bankruptcy Code that provides for the liquidation of a debtor's assets to pay off creditors.

Bankruptcy Relief

Legal processes and protections afforded to individuals or corporations that are unable to repay their debts, aimed at providing a fresh start or reorganization.

Federal Exemptions

Protections and privileges granted under federal law, often in bankruptcy, that allow individuals to retain certain assets from creditors.