Question

​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?

Answer 1

DeShawn not take offer engine detailing service

Step-by-step explanation:

given data

cost = $40

charges = $75

total price = $90

additional charges = $20

to find out

Should DeShawn continue offer

solution

we know here De shawn marginal benefit is

marginal benefit = total price - charges

marginal benefit = 90 - 75

marginal benefit = $15

and

we have given additional charges is $20

so

we see marginal cost here less than the marginal revenue

so DeShawn not take offer engine detailing service