Table 4-3

Refer to Table 4-3. 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
◦ consumers will buy no polo shirts.
◦ the marginal cost of producing the third polo shirt will increase to $20.
◦ producer surplus will rise from $13 to $28.
◦ there will be a surplus of polo shirts.