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ozzi
3 years ago
11

what marginal costs and benefits might a tour boat operator consider when deciding whether to purchase a new boat?

Business
1 answer:
VladimirAG [237]3 years ago
7 0

Answer

The tour boat operator needs to decide whether to buy a new boat to increase the income obtained per day or increase the number of trips made per day and avoid buying a new boat.

Explanation

Marginal cost measures the change in cost over the change in quantity. Marginal benefit is a measurement of change in benefits over change in quantity. The boat operator is going to buy a new boat. Will the marginal cost (how the boat cost) be greater than the marginal benefit( income from increased number of boats).


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