Solved

Lionel's Lawn Care Is a Company That Maintains Residential Yards

Question 97

Multiple Choice

Lionel's Lawn Care is a company that maintains residential yards. Lionel's cost for his standard package of mowing, edging, and trimming is $15, and he charges $25 for this service. For a total price of $40, Lionel will also trim shrubs, a service that adds an additional $10 to the total cost of the standard package. Should Lionel continue to offer the shrub-trimming service?


A) Yes, his marginal benefit is greater than his marginal cost.
B) Yes, but only if he raises the price of the standard package.
C) No, his marginal benefit is less than his marginal cost.
D) More information is needed for Lionel to make this decision.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents