The Get-There-Safe Bus Company Incurs an Average Cost of $45

question 7

Multiple Choice

The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanooga.In advance of a particular trip,four seats remain unsold.The bus company could increase its profit only if it

• A)charged any ticket price above $0 for the four remaining seats.
• B)charged at least $11.25 for each of the four remaining seats.
• C)charged at least $45 for each of the four remaining seats.
• D)paid four people to occupy the four remaining seats.

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Definitions:

Economic Output

The total value of all goods and services produced within an economy over a specific period of time.

Transaction Costs

Expenses incurred when buying or selling goods and services, which may include search, bargaining, and enforcement costs.

Value And Exchange

The principle that the worth of goods and services is determined through the process of trading them in markets, where their value is influenced by supply and demand.

Objective Value

The perceived worth of a good or service based on its ability to fulfill a need or want, as opposed to subjective personal preferences.