Dif 2 ref 1 1 nat analytic loc marginal costs

DIF: 2 REF: 1-1
NAT: Analytic LOC: Marginal costs & benefits TOP: Marginal changes
MSC: Applicative
61. The average cost per seat on the 50-passenger Floating-On-Air Bus company's trip from Kansas City to St.
Louis, on which no refreshments are served, is $45. In advance of a particular trip, three seats remain unsold.
The bus company could increase its profit only if it
a. charged any ticket price above $0 for the three remaining seats.
b
.
charged at least $15 for each of the three remaining seats.
c. charged at least $45 for each of the three remaining seats.
d
.
paid three people to occupy the three remaining seats.
ANS: A DIF: 2 REF: 1-1
NAT: Analytic LOC: Marginal costs & benefits TOP: Marginal cost
MSC: Applicative
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Chapter 1/Ten Principles of Economics 19
62. Tom is restoring a car and has already spent $3500 on the restoration. He expects to be able to sell the car for
$5000. Tom discovers that he needs to do an additional $2000 of work to make the table worth $5000 to
potential buyers. He could also sell the car now, without completing the additional work, for $2800. What
should he do?
DIF: 3 REF: 1-1
NAT: Analytic LOC: Marginal costs & benefits TOP: Marginal changes
MSC: Analytical
63. Traci is planning to sell her house, and she is considering making two upgrades to the house before listing it
for sale. Replacing the carpeting will cost her $3,000 and replacing the roof will cost her $6,000. Traci
expects the new carpeting to increase the value of her house by $2,500 and the new roof to increase the value
of her house by $7,500.