You run a game-day shuttle service for parking services for the local ball club. Suppose you are compensated $10 per customer, per ride. In other words, your marginal revenue is $10. Your costs for different customer loads are summarized in the following table. For each customer load, calculate both the marginal cost and the average cost. Then answer the question that follows. Note: Round your answers to the nearest cent. Customers Total Cost Marginal Cost Average Cost ($) ($ per customer) ($ per customer) 1 $30 2 $35 3 $45 4 $60 5 $80 6 $105 7 $135 8 $170 In order to maximize profits, you should carry ______ customers per load.

You run a game-day shuttle service for parking services for the local ball club. Suppose you are compensated $10 per customer, per ride. In other words, your marginal revenue is $10. Your costs for different customer loads are summarized in the following table. For each customer load, calculate both the marginal cost and the average cost. Then answer the question that follows. Note: Round your answers to the nearest cent. Customers Total Cost Marginal Cost Average Cost ($) ($ per customer) ($ per customer) 1 $30 2 $35 3 $45 4 $60 5 $80 6 $105 7 $135 8 $170 In order to maximize profits, you should carry ______ customers per load.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter18: Auctions

Section: Chapter Questions

Problem 18.6IP

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