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

question 156

Multiple Choice

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.Should Allison continue to offer the 3-colour pinstripe application?

• A)Yes, she still makes a profit by selling the 3-colour application.
• B)Yes, but only if she lowers the price of the 1-colour application.
• C)No, her marginal benefit is less than her marginal cost.
• D)More information is needed for Allison to make this decision.

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Definitions:

Appraising Employee

The process of evaluating an employee's performance, often to inform decisions on promotions, pay raises, and development needs.

Documentation

The materials that provide official information or evidence about a particular subject, process, or product.

Employment Termination

The end of an employee's duration with an employer, which can be voluntary or involuntary.

Interpretation

The act of explaining the meaning of something, often involving translation from one language to another or elucidation of complex ideas.