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Problem 1: Using the Marginal Approach
Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for different customer loads are:
1 customer: $30
2 customers: $32
3 customers: $35
4 customers: $38
5 customers: $42
6 customers: $48
7 customers: $57
8 customers: $68.
1. What are your marginal costs for each customer load level? (Chart)
2. If you are compensated $10 per ride, what customer load would you choose? (Essay)
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