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.What is the marginal cost of moving up from the 1-color application to the 3-color application?
A)$35
B)$40
C)$80
D)$175

Question

Quizplus · Accepted Answer

To find the marginal cost, we need to calculate the additional cost of producing one more unit, in this case, the additional cost of moving from the 1-color application to the 3-color application.
The cost of the 1-color application is $35, and the cost of the 3-color application is $35 + $40 = $75.
Therefore, the marginal cost of moving up from the 1-color application to the 3-color application is $75 - $35 = $40. 
So, the best choice is B.

Allison's Auto Art Is a Company That Applies Pinstripes to Vehicles.Allison's