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

question 29

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. One of Vincent's friends tells him he would be more profitable if he charged a single price of $18. Assuming no changes in consumer demand, what would Vincent's profit be if he charged every customer $18?

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Definitions:

Stock

A type of investment that represents ownership in a corporation, giving the holder a claim on part of the corporation's assets and profits.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points.

Population

A group of individuals, items, or data from which a statistical sample can be drawn for analysis.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the degree to which individual data points differ from the mean value.