Scenario 15-10 Vincent Operates a Scenic Tour Business in Boston. He Has

question 580

Multiple Choice

Scenario 15-10
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 15-10. Vincent is considering changing his pricing strategy. Which of the following options results in the highest profit per day?

• A)Charge a single price of $10 to all passengers.
• B)Charge a single price of $12 to all passengers.
• C)Charge a single price of $18 to all passengers.
• D)Continue charging each buyer his/her willingness to pay.

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Definitions:

Influence of Money

The effect that financial contributions can have on political decisions, election outcomes, and policy formations.

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The process through which a political party selects its candidate for the office of President.

Election-year Primaries

The process by which political parties select their candidates for election to public office during the year an election is held.