Question

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. What is Lionel's marginal benefit if he sells thestandard package?A) $10B) $15C) $25D) $40

Answer 1

Answer:

Option "B" is the correct answer to the following statement.

$15

Explanation:

Marginal revenue is the extra revenue produced from increasing sales of a single unit of the commodity. Marginal benefit is the income received by a business or entity when the creation and distribution of one extra or marginal product.

Marginal Benefit = New revenue - Old revenue

                            = ($40) - ($25)

                            =$15

So,the Marginal Benefit for Lionel's Lawn Care is $15 .