Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Individual Problems 4-2 You run a game-day shuttle service for parking services for the local ball club. Suppose you are compensated $20 per customer,
2. Individual Problems 4-2
You run a game-day shuttle service for parking services for the local ball club. Suppose you are compensated $20 per customer, per ride. In other words, your marginal revenue is $20. Your costs for different customer loads are summarized in the following table.
For each customer load, calculate both the marginal cost and the average cost. Then answer the question that follows.
Note: Round your answers to the nearest cent.
Customers | Total Cost | Marginal Cost | Average Cost |
---|---|---|---|
($) | ($ per customer) | ($ per customer) | |
1 | $30 | ||
2 | $35 | ||
3 | $45 | ||
4 | $60 | ||
5 | $80 | ||
6 | $105 | ||
7 | $135 | ||
8 | $170 | ||
In order to maximize profits, you should carry customers per load.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started