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 $40, and he charges $75 for this service
For a total price of $90, DeShawn will also detail the car's engine, a service that adds an additional $20 to the total cost of the package. Should DeShawn continue to offer the engine detailing service?
A) yes, but only if he raises the price of the basic detailing package
B) No, his marginal benefit is less than his marginal cost.
C) Yes, he still makes a profit by selling the engine detailing service with the basic detailing package.
D) More information is needed for DeShawn to make this decision.
B
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The sustainable upper limit of real GDP is a level of GDP that is
A) greater than potential GDP, but by how much greater is unknown and controversial. B) less than potential GDP, but by how much less is unknown and controversial. C) potential GDP. D) determined only by what is the full employment equilibrium in the labor market. E) None of the above answers is correct because there is no sustainable upper limit to real GDP because real GDP can always be increased.
What are the leading economic indicators supposed to predict?
(A) Business cycles (B) Nonmarket activities (C) Consumer expectations (D) Stagflation