DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic detailing package is $45, and he charges $80 for this service. For a total price of $95, DeShawn will also detail the car's engine, a service that adds an additional $20 to the total cost of the package. What is the marginal cost of adding the engine detailing to the basic detailing package?

Question

Quizplus · Accepted Answer

The marginal cost is the increase in cost for producing one more unit of output, in this case, adding engine detailing to the basic detailing package. The cost of engine detailing is $20, so the marginal cost of adding engine detailing to the basic detailing package is also $20. Therefore, the best choice is A.

DeShawn's Detailing Is a Service That Details Cars at the Customers