The Price of a Cowboy Hat Is $100

question 67

Multiple Choice

The price of a cowboy hat is $100.Willie can produce a hat at a marginal cost of $130,Waylon can produce at a marginal cost of $100,and Merle can produce at a marginal cost of $85.Which of the following statements is correct?

• A) The sum of producer surplus is $15.
• B) All three of these sellers will gain producer surplus from selling a hat.
• C) The sum of producer surplus is $30.
• D) Willie's producer surplus is $30.
• E) The sum of producer surplus is $45.

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