A privately-owned summer camp for youngsters has the following data for a 12-week session: Charge per camper: $480 per week Fixed costs: $192,000 per session Variable cost per camper: $320 per week Capacity: 200 campers What are the marginal and average costs per camper at 80% capacity? Would it be ethical to charge campers different rates depending on their family's socioeconomic status? Identify and describe two points pro and two points cons for such a policy. Draw cash flow diagram for this problem.

A privately-owned summer camp for youngsters has the following data for a 12-week session: Charge per camper: $480 per week Fixed costs: $192,000 per session Variable cost per camper: $320 per week Capacity: 200 campers What are the marginal and average costs per camper at 80% capacity? Would it be ethical to charge campers different rates depending on their family's socioeconomic status? Identify and describe two points pro and two points cons for such a policy. Draw cash flow diagram for this problem.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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