Please explain and show work

_l 11. In the attached article about a Ford Fiesta, the author describes a new engine in the test car he was given to drive. On the last page, the author notes \"Ford's engine line in Cologne, Germany, is cranking out 1.0-Iiter mum doughnuts, by the hundreds of thousands annually\" and that \"It all adds up to less: the 1.0-liter produces more horsepower and torque than Ford's own 1.6-liter four cylinder (123 vs. 120), with about a third less displacement, 25% fewer parts\". Assume the smaller engine with fewer parts costs less to produce, which seems reasonable. On the rst page, the author notes the engine is a $995 option. if the engine is less costly to produce, what is the most likely reason why would Ford charge customers $995 to have it installed? The cost of the rest of car would be increased with the new engine installed so Ford would have to charge more for the car. The cost of the rest of car would be decreased with the new engine installed so Ford could charge more for the car. The demand and hence marginal revenue for the new engine would be less than the demand for the standard engine so even with a lower cost' Ford can charge more for the engine. The demand and hence marginal revenue for the new engine would be greater than the demand for the standard engine so even with a lower cost, Ford can charge more for the engine. None of the above answers seems reasonably correct