In order to produce 100 pairs of oven gloves, Marcia incurs an average total cost of $2.50 per pair. Marcia's marginal cost is constant at $10.00 for every pair of oven gloves produced. The total cost to produce 50 pairs of oven gloves is:

a. $250.00

b. $500.00

c. $300.00

d. $200.00

option (d) $200.00

Explanation:

Average total cost for 100 pairs = $2.50

Marginal cost for every pair = $10.00

Now,

Total cost = Fixed cost + Variable cost

or

Fixed cost = Total cost - variable cost

or

Fixed cost = (Average total cost * 100) - (Marginal cost * 100)

= ($2.5 * 100) - ($1 * 100)

= $250 - $100

= $150

thus,

Total cost to produce 50 pairs of oven gloves

= fixed cost + variable cost

= $150 + (50 * $1)

= $150 + $50

= $200

Hence,

option (d) $200.00