Table 4-6 -Refer to Table 4-6. the Table Above Lists the Marginal

Multiple Choice

Table 4-6

-Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $18,

A) Marko's will produce four shirts.
B) producer surplus from the first shirt is $18.
C) producer surplus will equal $22.
D) there will be a surplus; as a result, the price will fall to $7.