In this Lorenz Curve, the formula for the GINI coefficient is: (Yellow Area) / (Yellow Area + Green Area). If the Yellow Area is

Cost of Membership
benefits of membership

Answer:

DeShawn should not continue offering the engine detailing service

Explanation:

Given data

Cost = $40

Charge = $75

Total price = $90

Additional charges amount to $20

To determine

Whether DeShawn should proceed with the offer

Solution

Here, we know DeShawn's marginal benefit is Marginal benefit = total price - charge

Marginal benefit = 90 - 75

Marginal benefit = $15

Given that the additional charge is $20

Thus,

the marginal cost exceeds the marginal revenue

Hence, DeShawn should not continue the engine detailing service

Response:

Clarification:pog