You run a game-day shuttle service for parking services for the local ball club. Suppose you are compensated $30 per customer, per ride. In other words, your marginal revenue is $30. Your costs for different customer loads are summarized in the following table. For each customer load, calculate both the marginal cost and the average cost. Then answer the question that follows. Note: Round your answers to the nearest cent. Marginal Cost ($ per customer) Customers 1 2 3 4 5 6 7 8 Total Cost ($) $30 $45 $75 $120 $180 $255 $345 $450 AA $15 $30 $45 $60 $75 $90 $105 In order to maximize profits, you should carry 6 Average Cost ($ per customer) S S $ $ $ $ S $30.00 customers per load.

You run a game-day shuttle service for parking services for the local ball club. Suppose you are compensated $30 per customer, per ride. In other words, your marginal revenue is $30. Your costs for different customer loads are summarized in the following table. For each customer load, calculate both the marginal cost and the average cost. Then answer the question that follows. Note: Round your answers to the nearest cent. Marginal Cost ($ per customer) Customers 1 2 3 4 5 6 7 8 Total Cost ($) $30 $45 $75 $120 $180 $255 $345 $450 AA $15 $30 $45 $60 $75 $90 $105 In order to maximize profits, you should carry 6 Average Cost ($ per customer) S S $ $ $ $ S $30.00 customers per load.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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