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Question

Suppose your company runs a shuttle service of a hotel to and from an airport. The cost for different customer

loads are:

1 customer $30 Total Rev 10 Profit -2

2 customers $32 Total Rev 20 Profit -12

3 customers $35 Total Rev 30 Profit -5

4 customers $38 Total Rev 40 Profit 2

5 customers $42 Total Rev 50 Profit 8

6 customers $48 Total Rev 60 Profit 12

7 customers $57 Total Rev 70 Profit 13

8 customers $68 Total Rev 80 Profit 12


What are your marginal costs for each customer load level?

Top Answer

MC=[{TC of (n+1)th quantity}-{TC of nth quantity}]/[(n+1)th quantity-nth quantity] For... View the full answer

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