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Exhibit: Stages of Production of Toy Model Airplanes Stages of Production Sales Value Extracting crude oil $5 Refining the oil $8 Making plastic $10 Making the model airplane $16 Distributing the model airplane to retailer $17 Selling the model airplane to customer $21 35. (Exhibit: Stages of Production of Toy Model Airplanes) The value added by the sale of a model airplane to the customer is a. $2 b. $3 c. $4 d. $5 36. (Exhibit: Stages of Production of Toy Model Airplanes) The total sales value of all transactions involved in the production of a model airplane is a. $5 b. $21 c. $56 d. $77 37. When a monopoly changes price to respond to a change in marginal cost, the in is than the a. change; price; less; the change in marginal cost b. increase; price; greater; change in output c. decrease; output; greater; change in output d. change; price; equal to; change in marginal cost 38. The XYZ Company is a profit-maximizing firm with a monopoly in the production of pennants. The firm sells its pennants for $10 each. We can conclude that the XYZ Company is experiencing: a. diminishing marginal returns to its variable factor(s) of production. b. increasing marginal returns to its variable factor(s) of production. c. constant marginal returns to its variable factor(s) of production. d. entry by rival firms whenever profits become positive