Scenario 15-11 Vincent Operates a Scenic Tour Business in Boston. He Has

question 124

Short Answer

Scenario 15-11
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 15-11. What is Vincent's cost of serving all passengers demanding a tour on a typical day?

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Definitions:

Materialism

A value system that places a high importance on the acquisition and possession of material goods and wealth as a measure of success or happiness.

Negative Consequences

Undesirable outcomes resulting from an action or decision, often causing harm or loss.

Concrete Language

Language that describes specific, observable things, actions, or physical entities, as opposed to abstract concepts.

Cliché

An expression, idea, or element of an artistic work that has become overused to the point of losing its original meaning or effect.