Scenario 15-1 Vincent Operates a Scenic Tour Business in Boston. He Has

question 516

Short Answer

Scenario 15-1
Vincent operates a scenic tour business in Boston. He has one bus which can fit 50 people per tour and each tour lasts 2 hours. His total cost of operating one tour is fixed at $450. Vincent's cost is not reduced if he runs a tour with a partially full bus. While his cost is the same for all tours, Vincent charges each passenger his/her willingness to pay: adults $18 per trip, children $10 per trip, and senior citizens $12 per trip. At those rates, on a typical day Vincent's demand is: Assume that Vincent's customers are always available for the tour; therefore, he can fill his bus for each tour as long as there is sufficient total demand for the day.
-Refer to Scenario 15-1. What is Vincent's cost of serving all passengers demanding a tour on a typical day?

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Definitions:

Biological Factors

Elements within the biological makeup of organisms, such as genetics, brain chemistry, and physiology, that influence behavior and mental states.

Dissociative Identity Disorder

A psychological condition formerly known as multiple personality disorder, marked by the presence of two or more distinct personality states or identities in a single individual.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.

Press Coverage

The dissemination and reporting of news events and information by various media outlets.