Production costs for manufacturing T-shirts consist of a fixed cost of $18,000 plus variable costs of $4 per shirt. Each T-shirt sells for $12 dollars. What is the marginal cost?
A)$4
B)$12
C)$8
D)$18,000

Question

Quizplus · Accepted Answer

The marginal cost refers to the cost of producing one additional unit, which in this case is the variable cost of $4 per shirt. Fixed costs do not affect marginal cost.

Production Costs for Manufacturing T-Shirts Consist of a Fixed Cost