Question

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

Answer 1

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

Answer 2

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.