You run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your marginal costs for each customer load level? If you are compensated $10 per ride, what customer load would you want?

Question

Jacquelyn Morton

Business

1 October, 19:56

You run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your marginal costs for each customer load level? If you are compensated $10 per ride, what customer load would you want?

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Answers (1)

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Lee Berger · Answer 1

Customer Cost Marginal cost Total Revenue Profit

1 $30 0 10 - 20

2 $32 2 20 - 12

3 $35 3 30 - 5

4 $38 3 40 2

5 $42 4 50 8

6 $48 6 60 12

7 $57 9 70 13

8 $68 11 80 12

Therefore, profit from the 7th customer load is the highest. So, he want 7th customer load.