The largest portion of the M1 money supply consists of

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 price of polo shirts increases from $15 to $20

A) the marginal cost of producing the third polo shirt will increase to $20. B) there will be a surplus of polo shirts. C) producer surplus will rise from $13 to $28. D) consumers will buy no polo shirts.

If one is on the contract curve

A. further beneficial trades can occur. B. no further voluntary trade will occur. C. the indifference curves of both consumers are crossing. D. the allocation is not Pareto optimal.