Asked by Matthew Yorston on Jul 09, 2024
Verified
(Table: Cost Data) Use Table: Cost Data.The marginal cost of producing the fourth purse is:
A) $60.
B) $50.
C) $40.
D) $20.
Marginal Cost
The cost of producing one additional unit of a product or service, which can inform decisions on how much to produce.
Producing Purse
The process involved in creating and manufacturing handbags.
- Examine and outline the mean fixed, variable, and total expenditures.
Verified Answer
AS
Andrew StetlerJul 13, 2024
Final Answer :
C
Explanation :
The marginal cost is the additional cost of producing one additional unit. From the table, we can see that the total cost of producing 4 purses is $180 and the total cost of producing 3 purses is $140. So, the marginal cost of producing the fourth purse is $40 ($180-$140=$40).
Learning Objectives
- Examine and outline the mean fixed, variable, and total expenditures.