Question

A company is producing 5,000 pairs of shoes per day. At this level of production, if they were to produce one more pair of shoes, it would cost them $20. What is the best description of the $20

Answer 1

Answer:

marginal cost

Explanation:

In simple words, The incremental expenses generated by manufacturing incremental quantities of a product or service are measured by marginal costs. The net difference in the price of manufacturing additional products is measured and divided by the difference in the amount of goods produced. In other words,  These are regular contingent expenses.

Thus, from the above we can conclude that the given case depicts marginal cost.