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:

Efficiency

The ability to accomplish a task or a set of tasks with the minimum expenditure of time and resources.

Equity

Fairness or justice in the way people are treated and decisions are made, often relating to economic policies or distribution of resources.

Capital Flows

The transfer of funds to support trade, investment, or business activities, domestically or across borders.

Short-run Profits

The profit earned by a firm during a period where at least one input is fixed, typically analyzed to understand performance without long-term adjustments.