Question
You run a game-day shuttle service for parking services for the local ball club. Your total costs for different customer loads are 0: $27, 1:
You run a game-day shuttle service for parking services for the local ball club. Your total costs for different customer loads are 0: $27, 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68.
1. For each customer load level beginning with 1, what is your average total cost?
2. For each customer load level beginning with 1, what is your marginal cost?
3. If you are compensated $9 per ride, what customer load would you want?
a.Enter your quantity and total cost data into your Excel spreadsheet.
b.Make a third column for ATC with the appropriate formula to determine the cell contents - but, after you have done so, ** delete the first cell of the ATC column, where 27/0 is an undefined number **.
c.Make a fourth column for MC, once again using the appropriate formula, and a fifth column for price.
d.Use your cursor to highlight the entire contents of your table, including the column-headers row, and from the "Insert" tab choose "Recommended Charts," then "Line."
e.Right-click on the chart that is produced, and then click "Select Data."Remove the TC curve by selecting it from among the various series and clicking the "-" sign.Thus you will be left with a graph of only the ATC, MC, and price curves.
f.Click on the Chart Title to label it as you see fit.
g.Copy the entire chart and paste into this document.
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