Table 5.3 -Refer to Table 5.3.The Table Above Lists the Marginal Cost

question 43

Multiple Choice

Table 5.3
-Refer to Table 5.3.The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specialises in producing fancy dress costumes.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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Forward Exchange Rate

The agreed-upon exchange rate for a currency to be exchanged on a future date.

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