If it costs Vijay $150 to design 5 websites and $175 to design 6 websites,then $175 is the marginal cost of producing the 6th Websites.

Question

Quizplus · Accepted Answer

To calculate the marginal cost, we need to find the additional cost of producing one more unit.

In this case, the cost of producing the first 5 websites is $150, and the cost of producing the first 6 websites is $175.

Therefore, the marginal cost of producing the 6th website would be:

Marginal cost = Total cost of producing 6 websites - Total cost of producing 5 websites

Marginal cost = $175 - $150
Marginal cost = $25

So, the statement " $175 is the marginal cost of producing the 6th Websites" is false.

If It Costs Vijay $150 to Design 5 Websites and $175