If an item has several good substitutes, the demand curve for that item is likely to be

Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of The Waco Kid's cowboy hats is $40

A) The Waco Kid will produce four hats. B) producer surplus from the first hat is $40. C) there will be a surplus; as a result, the price will fall to $24. D) producer surplus will equal $28.

Market price is $50. The firm's marginal cost curve is given by MC = 10 + 2Q

a. Find the profit-maximizing output for the firm. b. At this output, is the firm making a profit? Explain your answer.