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The marginal cost of producing a pair of jeans is $25. At a price of $15, you will _____.

A) lose money
B) cover your costs
C) earn a profit

User Ron Klein
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2 Answers

4 votes
well if it take about 25 dollars to make a pair of pant and your selling them for 15 dollars you would lose money. so it would be A. hope this helps

User Yuhi
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7 votes

Answer: A) lose money

The question states that if you want to produce a pair of jeans, you need to spend $25 dollars. This would put you at -$25. If then you sell the jeans, you can make $15. However, this is still less than the amount you invested in order to produce them. Even with the profit, you would still be at -$10, which means that you are losing money.

User ChetPrickles
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