If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces, then $50 is the marginal cost of producing the fifth necklace.

Question

Quizplus · Accepted Answer

We can use the concept of marginal cost to solve this problem. Marginal cost is the additional cost of producing one more unit of a product.

To find the marginal cost of producing the fifth necklace, we can subtract the total cost of producing 4 necklaces from the total cost of producing 5 necklaces:

$275 - $225 = $50

Therefore, the marginal cost of producing the fifth necklace is $50, which means that the statement is true and the answer is A.

If It Costs Danitra $225 to Create 4 Necklaces and $275