The table below shows the production cost information for Raincoat, Inc. Raincoat, Inc. Production CostRaincoats Total Cost Marginal Cost0 $50.00 -1 $55.00 $5.002 $57.50 $2.503 ? $5.00 What is the total cost of production associated with the 3rd3rd raincoat?Multiple choice question.$2.50$62.50$60.00$5.00
Question
The table below shows the production cost information for Raincoat, Inc. Raincoat, Inc. Production CostRaincoats Total Cost Marginal Cost0 55.00 57.50 5.00 What is the total cost of production associated with the 3rd3rd raincoat?Multiple choice question.62.505.00
Solution
The total cost of production associated with the 3rd raincoat can be calculated by adding the marginal cost of the 3rd raincoat to the total cost of the 2nd raincoat.
From the table, we know that the total cost of the 2nd raincoat is 5.00.
So, the total cost of the 3rd raincoat is 5.00 (marginal cost of the 3rd raincoat) = $62.50.
Therefore, the total cost of production associated with the 3rd raincoat is $62.50.
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