Gary produces handmade baseball gloves.On any given working day,it costs Gary $50 to make the first glove,$60 to make the second,$80 to make the third,and $110 to make the fourth glove.What should Gary do?

Question

Quizplus · Accepted Answer

Gary should not shut down production because he is still making a profit from each glove he produces. The cost of making each glove increases as he produces more, but he can still sell each glove for a higher price than it costs him to make it. Therefore, he is still making a profit and should continue to produce more gloves as long as there is demand for them.

Gary Produces Handmade Baseball Gloves