Multiple Choice
Allison's Auto Art is a company that applies pinstripes to vehicles.Allison's cost for a basic 1-colour pinstriping job is $35, and she charges $95 for this service.For a total price of $175, Allison will apply a fancier 3-colour pinstripe application to an automobile, a service that adds an additional $40 to the total cost of the package.Should Allison 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 Allison to make this decision.
Correct Answer:

Verified
Correct Answer:
Verified
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