A Large School District Has 300 School Buses

question 2

Multiple Choice

A large school district has 300 school buses.If each school bus is used 3.0 hours each day,the average speed of the school buses is 15 mi/h,and the fuel economy of the buses is 10 mi/gal.How much does it cost to run these buses for 22 school days if gasoline costs $4.10 a gallon?

• A)$60,000
• B)$120,000
• C)$180,000
• D)$240,000

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Definitions:

Marginal Revenue

The increase in income derived from the sale of one more unit of a good or service.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Single Price Monopolist

A monopolist that charges all consumers the same price for its product, as opposed to practicing price discrimination.

Profit Area

The part of a business or market where the difference between revenue and costs is positive, indicating financial gain.