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. what is deshawn's marginal benefit if he sells a basic detailing package?

A marginal advantage or benefit is a modest but demonstrable benefit that a buyer receives by purchasing an additional unit of an item or service.

As a customer decides to consume more of a single commodity, the marginal benefit typically decreases.

What is the explanation justifying the above answer?

The following information about a car detailing service is given,

Cost basic detailing package = S40
Price of basic detailing package = $75
Value of detailing car's engine adds to the cost = $20
Price of basic package + car' s engine detailing = $90

(a) The marginal advantage or benefit is the extra benefit obtained by selling an additional unit. Because the detailing package costs $75, the profit from selling an extra item is $75. If DeShawn sells the standard bundle, the marginal benefit is $75.

(b) The marginal cost is the incremental cost of generating one more unit of output.

Because the worth of the detailing car's engine adds $20 to the bill. As a result, the marginal cost of include engine detailing in the basic detailing package is $20.

(c) Compare the marginal benefit and marginal cost of offering engine detailing service to decide whether to give engine detailing service. The marginal cost of engine detailing service is twenty dollars.

DeShawn provides this service as part of the base package for S90, thus the marginal benefit is $15 [=$90 - $75].

DeShawn should not provide engine detailing services since the marginal benefit is less than the marginal expense of doing so.

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