Table 4-2

-Refer to Table 4-2.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

Question

Table 4-2
 
-Refer to Table 4-2.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

Quizplus · Accepted Answer

When the price increases from $15 to $20, the producer surplus increases because the firm receives more revenue for each shirt sold above the marginal cost. The increase in price leads to a higher producer surplus, calculated as the difference between the price and the marginal cost for each unit sold.

Table 4-2 -Refer to Table 4-2.The Table Above Lists the Marginal Cost