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

question 181

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 increases from $15 to $20

• A)consumers will buy no polo shirts.
• B)the marginal cost of producing the third polo shirt will increase to $20.
• C)producer surplus will rise from $13 to $28.
• D)there will be a surplus of polo shirts.

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Definitions:

General Fund

A primary accounting fund used by a government to record its general operating revenues and expenses.

Fund Balance

The net assets of a governmental fund calculated as the difference between fund assets and liabilities, reflecting the financial position of the fund.