The Accompanying Table Summarizes Six Potential Customers' Willingness to Pay

question 57

Multiple Choice

The accompanying table summarizes six potential customers' willingness to pay for a solo skydiving experience from SkyMasters, Inc. The aircraft has room for eight people, including the pilot and skydiving instructor. The marginal cost of adding each additional passenger is $100. Use this information to answer the questions. $\begin{array}{ll}\text { Customer }&\text { Maximum Wilingness to Pay }\\\text { Harold } & \$ 400 \\\text { Leslie } & \$ 350 \\\text { Jay } & \$ 300 \\\text { Kisten } & \$ 250 \\\text { Ivana } & \$ 200 \\\text { Matt } & \$ 150\end{array}$
-Assume that SkyMasters, Inc. follows the profit-maximizing rule and that the company charges a single price for skydiving. Calculate the company's total revenue.

• A) $1,650
• B) $1,500
• C) $1,000
• D) $900
• E) $600

---

Definitions:

Formal Rule Making

A process involving public notice and the opportunity for public comment before a government agency can establish new regulations.

Freedom Of Information Act

A law ensuring public access to government records and promoting transparency.

National Security

Measures and policies adopted by a nation to protect its citizens, economy, and institutions against threats.

Criminal Investigations

The process by which authorities (such as the police) inquire into the facts and circumstances of a crime to gather evidence for the prosecution of offenders.