Table 4-3 -Refer to Table 4-3.The Table Above Lists the Marginal Cost

question 43

Multiple Choice

Table 4-3

-Refer to Table 4-3.The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear.If the price of cowboy hats decreases from $38 to $30,

• A)consumer surplus will rise by $6.
• B)the marginal cost of producing the third cowboy hat will fall to $30.
• C)producer surplus will fall from $22 to $6.
• D)producer surplus will rise from $8 to $24.

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Definitions:

Weight Gain

An increase in body weight over a period of time, which can result from an excess of calorie intake over calorie expenditure.

Double-Blind Experiment

An experimental design in which neither the participants nor the experimenters know which participants are in the control group and which are in the experimental group, until after the results are collected, to reduce bias.

Fluoride Mouthwash

An oral rinse product containing fluoride, intended to reduce dental cavities by strengthening tooth enamel.

Matched Pairs Design

An experimental design where each subject is paired up with another subject with similar characteristics, and one subject from each pair is assigned to the treatment group and the other to the control group.