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Problem 1: Using the Marginal Approach Your company runs a shuttle business of a hotel to and from the local airport. The costs for different…

Problem 1: Using the Marginal Approach  

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.  

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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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