If it costs Sinclair $300 to produce 3 suede jackets and $420 to produce 4 suede jackets, then the difference of $120 is the marginal cost of producing the 4th suede jacket.

Question

Quizplus · Accepted Answer

The marginal cost is the cost of producing one additional unit of a product. In this case, the cost of producing the 4th jacket is $420 - $300 = $120. Therefore, the statement is true and the answer is A.

If It Costs Sinclair $300 to Produce 3 Suede Jackets