Multiple Choice
Allison's Auto Art is a company that applies pinstripes to vehicles.Allison's cost for a basic 1-color pinstriping job is $35, and she charges $95 for this service.For a total price of $175, Allison will apply a fancier 3-color 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-color pinstripe application?
A) Yes, she still makes a profit by selling the 3-color application.
B) Yes, but only if she lowers the price of the 1-color 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
Q22: The sales revenue a seller receives from
Q23: What is the difference between goods and
Q24: What is a mixed economy?
Q25: The prevalence of Alzheimer's dementia is very
Q26: Ford assembles some cars in Mexico because
Q28: Explain the economic idea that "people respond
Q29: The idea that because of scarcity, producing
Q30: Scarcity refers to a situation in which
Q31: A firm's technology may depend on which
Q32: Which of the following statements about positive