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You are working for a company that does helicopter tours of the Grand Canyon. So far, you have organized 10 tours, and a customer is asking you to organize another tour. Right now, the total cost of the 10 tours equals $500, but if you organize another tour, the average total cost will increase to $55. a. Should you say yes to the customer if she offers to pay you $200? Briefly explain and show your calculations. b. If you organize this tour, how will your profit change?

You are working for a company that does helicopter tours of the Grand Canyon. So far, you have organized 10 tours, and a customer is asking you to organize another tour. Right now, the total cost of the 10 tours equals $500, but if you organize another tour, the average total cost will increase to $55. a. Should you say yes to the customer if she offers to pay you $200? Briefly explain and show your calculations. b. If you organize this tour, how will your profit change?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You are working for a company that does helicopter tours of the Grand Canyon. So far, you have organized 10 tours, and a customer is asking you to organize another tour. Right now, the total cost of the 10 tours equals $500, but if you organize another tour, the average total cost will increase to $55. a. Should you say yes to the customer if she offers to pay you $200? Briefly explain and show your calculations. b. If you organize this tour, how will your profit change?
Transcribed Image Text:You are working for a company that does helicopter tours of the Grand Canyon. So far, you have organized 10 tours, and a customer is asking you to organize another tour. Right now, the total cost of the 10 tours equals $500, but if you organize another tour, the average total cost will increase to $55. a. Should you say yes to the customer if she offers to pay you $200? Briefly explain and show your calculations. b. If you organize this tour, how will your profit change?
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