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kupik [55]
3 years ago
11

If the total cost of producing 300 leather jackets is $400 and the total cost of producing 301 leather jackets is $435, what is

the marginal cost of production at 300 leather jackets?
History
2 answers:
Morgarella [4.7K]3 years ago
7 0
The marginal cost of production at 300 leather jackets will be $35.
stiks02 [169]3 years ago
5 0

The marginal cost of production at 300 leather jackets is $35.

The marginal cost of production is defined as the increase in the total costs beared due to the production of an extra unit of output, in this case, an extra leather jacket.

If the total output is 300 units (which are produced at a total cost of $400), and the firm wants to produce an extra unit, the total cost would be $435. Therefore <u>the increase in total cost experienced by the production of one extra unit of output (provided that the initial amount produced was 300 units) is $35. </u>

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