If Jakob, who runs a sports jersey assembly factory, knows the marginal cost of the first sports jersey is $21, the marginal cost of the second sports jersey is $40, and the marginal cost of the third jersey is
$17, what is the total variable cost of producing three jerseys?
A)$26
B)$78
C)$17
D)$61

Question

Quizplus · Accepted Answer

Total variable cost is the sum of the marginal costs of each individual unit. Therefore, the total variable cost of producing three jerseys is $21 + $40 + $17 = $78. Therefore, the best choice is B.

If Jakob, Who Runs a Sports Jersey Assembly Factory, Knows