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. Should Lionel continue to offer the shrub-trimming service?
A) yes, his marginal benefit is greater than his marginal cost
B) yes, but only if he raises the price of the standard package
C) no, his marginal benefit is less than his marginal cost
D) More information is needed for Lionel to make this decision.
Answer: A
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