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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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Discontinued operations refer to the cessation of some business activities or segments.  They are usually reported as a separate line item.  Therefore, all the gains and losses for that discontinued division must be reported separately on the company's income statement. The purpose is to distinguish them from those of continuing operations.

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Read 2 more answers
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