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

Question

Quizplus · Accepted Answer

To find the marginal cost of producing one additional necklace, we need to calculate the difference between the total cost of producing 5 necklaces and the total cost of producing 4 necklaces.

Total cost for producing 5 necklaces = $275 
Total cost for producing 4 necklaces = $225

Marginal cost of producing the 5th necklace = Total cost of producing 5 necklaces - Total cost of producing 4 necklaces 
                                                 = $275 - $225 
                                                 = $50

Therefore, the statement is true and the answer is A.

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