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

Question

Quizplus · Accepted Answer

The marginal cost of production is the additional cost incurred in producing one more unit of the product. In this case, the difference in cost between producing three and four suede jackets is $420 - $300 = $120. Therefore, the marginal cost of producing the fourth suede jacket is $120, making statement A true.

If It Costs Sinclair $300 to Produce Three Suede Jackets