Suppose the extra cost to Apple Computer of producing another iPod is US$270. Then, Apple should not produce this unit if it can only sell it for US$270.

Question

Quizplus · Accepted Answer

The statement is false because if the extra cost of producing another iPod is US$270, and Apple can sell it for US$270, they are covering the marginal cost of production. Decisions to produce additional units typically consider whether the sale price covers the marginal cost. However, this scenario does not account for profit, fixed costs, or other variables that influence production decisions.

Suppose the Extra Cost to Apple Computer of Producing Another