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

Question

Quizplus · Accepted Answer

The marginal cost is defined as the increase in cost that results from producing one additional unit of a product. In this case, the cost of producing the first 4 necklaces is $225, and the cost of producing the next additional necklace (the 5th one) is $275. Therefore, the marginal cost of producing the 5th necklace is $275 - $225 = $50. Therefore, the statement is true and the answer is A.

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