Suppose your company runs the shuttle business for a hotel to and from the local airport. The costs for different customer load are:
1 customer: $30
2 customer: $32
3 customer: $35
4 customer: $38
5 customer: $42
6 customer: $48
7 customer: $57
8 customer $68
- what are your marginal costs for each customer load level?
- If you are compensated $10 per ride, what customer load would you choose?
solved part 1. marginal cost is the additional cost for every additional load hence to get marginal cost MC, we subtract... View the full answer