If it costs Sinclair $300 to produce 3 suede jackets and $450 to produce 4 suede jackets, then the difference of $150 is the marginal cost of producing the fourth suede jacket.

Question

Quizplus · Accepted Answer

The marginal cost is the cost of producing one additional unit. In this case, the cost of producing the fourth jacket can be calculated by taking the difference between the cost of producing 4 jackets and the cost of producing 3 jackets, which is $450 - $300 = $150. Therefore, the statement is true.

If It Costs Sinclair $300 to Produce 3 Suede Jackets