Suppose you are planning to start a shuttle service from one city to another city every day. You would leave city A at 7AM and deliver commuters to city B by 8AM. At 5PM the process would reverse.

What (economic) factors would you use to determine how large of a van/bus to purchase?

Once the van/bus is purchased, how would you estimate marginal cost and use marginal cost to set price?

Give the answer with explaination of all questions