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-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 increases from $38 to $46,

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Producer surplus increases when the price increases because it is the difference between what producers are willing to accept for a good versus what they actually receive. In this scenario, as the price increases from $38 to $46, the area representing producer surplus on a supply and demand graph would increase, reflecting the higher price received over the marginal cost of production up to the quantity produced. The specific numbers ($22 to $46) might not directly correlate to calculated values without seeing Table 4-3, but the concept that producer surplus increases with price is correct.

? -Refer to Table 4-3. the Table Above Lists the Marginal