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For many years, a large number of charter boats have operated out of Boston Harbor that take people out to fish. In this competitive market, the price of a full day's fishing is $15 per person. Boats hold up to 12 people and will operate on any given day as long as at least 6 people sign up. On average, over the entire season, 8 people a day go out on each boat. The cost of a trip is the same regardless of the number of people on board. In light of the information provided above, what can be said (numerically) about the variable cost of operating a fishing boat trip in Boston Harbor?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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