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

question 40

Multiple Choice

Table 4-3

-Refer to Table 4-3.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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