The Accompanying Table Summarizes Information About Each Potential Passenger's Age

question 53

Multiple Choice

The accompanying table summarizes information about each potential passenger's age and his or her maximum willingness to pay for a solo skydiving experience from SkyMasters, Inc. The aircraft has room for eight people, including the pilot and skydiving instructor. The marginal cost of adding each additional passenger is $100. SkyMasters, Inc. holds significant market power for its region. Use this information to answer the questions. $\begin{array}{lll}&\text { Maximum }\\\text { Customer }&\text { Willingness to Pay }&\text { Age }\\\text { Harold } & \$ 400 & 50 \\\text { Jay } & \$ 300 & 45 \\\text { Leslie } & \$ 350 & 42 \\\text { Kristen } & \$ 250 & 21 \\\text { Ivana } & \$ 200 & 20 \\\text { Matt } & \$ 150 & 18\end{array}$
-If SkyMasters, Inc. could charge two different prices based on the age of the customer, what would those prices be?

• A) $300 and $200
• B) $350 and $200
• C) $400 and $150
• D) $400 and $200
• E) $250 and $100

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Definitions:

Wholesale Cost

The cost of goods purchased in large quantities directly from manufacturers or distributors before any markup for retail sale.

Trail Mix

A snack blend that typically consists of a mixture of nuts, seeds, dried fruits, and sometimes chocolate or candy.

Peanuts

Informally, a very small or insignificant amount of money; literally, a legume crop grown mainly for its edible seeds.

Raisins

Dried grapes often used as a snack or cooking and baking ingredient.