VLANs on swtich Or on router

some1 asked me why switches are supposed on VLAN/s for creation , if we put VLANs creation on router ... could we do ?

My ans was in NO .. i said him that router only works on layer 3 and its main function is to rout data/packets... and In LAN we observe communication is performing on LAyer 2 (DATA LINK Layer) and switch also on this layer ,,, that is why switch is supposed for creation of VLAN/s ... yes if different VLANS want to communicate /// router is there to do this job ...

and and he rejected my ans and told me that since router is expensive therefor3, we can't use router for VLAN ...

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So needed your opinions about it...

You are right "truesdq"

I agree with you and your explanation is really good.