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Question
Table 4-3| The Waco Kid's Cowboy Hats | Marginal Cost (dollars) |
| 1st hat | $24 |
| 2nd hat | 30 |
| 3rd hat | 38 |
| 4th hat | 46 |
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.
Answer
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