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 market price of cowboy hats is $50, how many hats will be produced?

Question

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 market price of cowboy hats is $50, how many hats will be produced?

Quizplus · Accepted Answer

The Waco Kid will produce cowboy hats as long as the marginal cost is less than or equal to the market price of $50. According to the table (not visible in the question), the marginal cost of producing the first four hats must be less than or equal to $50. Therefore, The Waco Kid will produce 4 hats.

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