Table 4.2
$\begin{array}{|l|c|}
\hline \begin{array}{c}
\text { The Lethbridge }\
\text { Kid's Cowboy } \
\text { Hats }
\end{array} & \begin{array}{c}
\text { Marginal Cost } \
\text { (dollars) }
\end{array} \
\hline \text { Ist hat } & \$ 24 \
\hline \text { 2nd hat } & 30 \
\hline \text { 3rd hat } & 38 \
\hline \text { 4th hat } & 46\
\hline
\end{array}$
-Refer to Table 4.2.The table above lists the marginal cost of cowboy hats by The Lethbridge Kid, a firm that specializes in producing western wear.If the price of cowboy hats increases from $38 to $46

Question

Table 4.2
 $\begin{array}{|l|c|}
\hline \begin{array}{c}
\text { The Lethbridge }\
\text { Kid's Cowboy } \
\text { Hats }
\end{array} & \begin{array}{c}
\text { Marginal Cost } \
\text { (dollars) }
\end{array} \
\hline \text { Ist hat } & \$ 24 \
\hline \text { 2nd hat } & 30 \
\hline \text { 3rd hat } & 38 \
\hline \text { 4th hat } & 46\
\hline
\end{array}$
-Refer to Table 4.2.The table above lists the marginal cost of cowboy hats by The Lethbridge Kid, a firm that specializes in producing western wear.If the price of cowboy hats increases from $38 to $46

Quizplus · Accepted Answer

The producer surplus is the difference between the price at which producers are willing to sell and the actual selling price. If the price increases to $46, the producer surplus for the third hat (costing $38) increases from $22 ($38 - $16) to $46 ($46 - $0).

Table 42 -Refer to Table 4