# Problem 1: Using the Marginal Approach Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for different…

Problem 1: Using the Marginal Approach Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for different…

If you are compensated \$10 per ride, what customer load would you choose?
____Marginal Cost is the change in costs due to the additional customer. Since marginal revenue is the price of \$10, you will serve customers up to the point where MC > MR or you will serve 7 customers.
____Marginal Cost is the change in costs due to the additional customer. Since marginal revenue is the price of \$10, you will serve customers up to the point where MC < MR or you will serve 10 customers.
____Marginal Cost is the change in costs due to the additional customer. Since marginal revenue is the price of \$10, you will serve customers up to the point where MC< MR or you will serve 9 customers.
____Marginal Cost is the change in costs due to the additional customer. Since marginal revenue is the price of \$10, you will serve customers up to the point where MC = MR or you will serve 7 customers.

“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

Rate this post