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Deffense [45]
3 years ago
7

You run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1:

$30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your marginal costs for each customer load level? If you are compensated $10 per ride, what customer load would you want?
Business
1 answer:
Aleonysh [2.5K]3 years ago
6 0

Answer:

Customer        Cost       Marginal cost       Total Revenue        Profit

      1                 $30              0                            10                     -20

      2                $32               2                            20                    -12

      3                $35               3                             30                    -5

      4                $38               3                             40                     2

      5                $42               4                             50                     8

      6                $48               6                             60                     12

      7                 $57               9                             70                     13

      8                 $68              11                              80                    12

Therefore, profit from the 7th customer load is the highest. So, he want 7th customer load.

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