Multiple Choice
Abigail's Auto Art is a company that applies pinstripes to vehicles. Abigail's cost for a basic 1-colour pinstriping job is $40, and she charges $100 for this service. For a total price of $185, Abigail will apply a fancier 3-colour pinstripe application to an automobile, a service that adds an additional $50 to the total cost of the package. Should Abigail continue to offer the 3-colour pinstripe application?
A) Yes, she still makes a profit by selling the 3-colour application.
B) Yes, but only if she lowers the price of the 1-colour application.
C) No, her marginal benefit is less than her marginal cost.
D) More information is needed for Abigail to make this decision.
Correct Answer:

Verified
Correct Answer:
Verified
Q80: Making optimal decisions "at the margin" requires<br>A)making
Q122: By definition, economics is the study of<br>A)how
Q125: When Mr Riley decides on the companies
Q126: Trina quits her $90 000-a-year job to
Q128: In economics, the place where buyers and
Q129: In a modern mixed economy, who decides
Q131: The three fundamental questions that any economy
Q134: If the price of milk was $2.75
Q135: A(n)_ cost is the highest valued alternative
Q217: What is meant by the statement that