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Using the marginal approach

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Reference no: EM131966299

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)

Reference no: EM131966299

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