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

Question

Quizplus · Accepted Answer

The marginal cost is the additional cost of producing one more unit of a product. In this case, the marginal cost of moving up from the 1-colour application to the 3-colour application is the cost of adding one more colour to the pinstripe application, which is $40. Therefore, the correct answer is B, $40.

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