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. Should Allison continue to offer the 3-color pinstripe application?
A) No, her marginal benefit is less than her marginal cost.
B) Yes, she still makes a profit by selling the 3-color application.
C) yes, but only if she lowers the price of the 1-color application
D) More information is needed for Allison to make this decision.
B
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How do liberals believe globalization affects poor countries?
a. makes them wealthier and more able to provide services b. prevents them from playing a role in the financial system c. leaves them at the mercy of powerful neighboring countries d. robs them of all their natural resources
Refer to Figure 22-4. The movement from A to B to C illustrates
A) an improvement in technology. B) diminishing returns to labor. C) a decline in capital per worker. D) diminishing returns to capital.