Answer :
To determine the total cost of production associated with the 3rd raincoat, we can use the information about the total cost and marginal cost provided in the table.
1. Understand Marginal Cost:
- The marginal cost is the additional cost incurred to produce one more unit of a good. In this case, the marginal cost for producing the 3rd raincoat is given as [tex]$5.00. 2. Find the Given Total Cost: - From the table, we know the total cost for producing 2 raincoats is $[/tex]57.50.
3. Calculate the Total Cost for the 3rd Raincoat:
- To determine the total cost for producing 3 raincoats, we need to add the marginal cost of the 3rd raincoat to the total cost of producing 2 raincoats.
- Total cost for 2 raincoats = [tex]$57.50 - Marginal cost of the 3rd raincoat = $[/tex]5.00
- So, the total cost for producing 3 raincoats = [tex]$57.50 + $[/tex]5.00
4. Compute the Total Cost:
- [tex]$57.50 + $[/tex]5.00 = [tex]$62.50 Therefore, the total cost of production associated with the 3rd raincoat is \(\$[/tex]62.50\).
The correct answer is: [tex]$\$[/tex] 62.50$
1. Understand Marginal Cost:
- The marginal cost is the additional cost incurred to produce one more unit of a good. In this case, the marginal cost for producing the 3rd raincoat is given as [tex]$5.00. 2. Find the Given Total Cost: - From the table, we know the total cost for producing 2 raincoats is $[/tex]57.50.
3. Calculate the Total Cost for the 3rd Raincoat:
- To determine the total cost for producing 3 raincoats, we need to add the marginal cost of the 3rd raincoat to the total cost of producing 2 raincoats.
- Total cost for 2 raincoats = [tex]$57.50 - Marginal cost of the 3rd raincoat = $[/tex]5.00
- So, the total cost for producing 3 raincoats = [tex]$57.50 + $[/tex]5.00
4. Compute the Total Cost:
- [tex]$57.50 + $[/tex]5.00 = [tex]$62.50 Therefore, the total cost of production associated with the 3rd raincoat is \(\$[/tex]62.50\).
The correct answer is: [tex]$\$[/tex] 62.50$
