Question

If jakob, who runs a sports jersey assembly factory, knows the marginal cost of the first sports jersey is $21, the marginal cost of the second sports jersey is $40, and the marginal cost of the third jersey is $17, what is the total variable cost of producing three jerseys?

Answer 1

$78 Variable cost is the sum of marginal costs over all units produced. So the variable cost of producing three jerseys can be found by simply adding the marginal costs together. 21+40+17 = $78