The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:
-Assume that SkyMasters follows the profit-maximizing rule and that the company charges a single price for skydiving.Which potential customer(s) will not purchase a skydiving experience?
Definitions:
Inventory
The total amount of goods and materials held by a business for the purpose of sale or production.
Credit Policy
A credit policy is a set of guidelines that a company follows to determine credit terms and conditions for its customers.
Agency Problem
A conflict of interest inherent in any relationship where one party is expected to act in another's best interest, such as between shareholders and company executives.
Borrow Money
Borrowing money involves receiving funds from another party, usually a bank or financial institution, under the agreement to pay back the principal amount along with interest over a set period.
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