The Accompanying Table Summarizes Six Potential Customers' Willingness to Pay

question 57

Multiple Choice

The accompanying table summarizes six potential customers' 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. Use this information to answer the questions. $\begin{array}{ll}\text { Customer }&\text { Maximum Wilingness to Pay }\\\text { Harold } & \$ 400 \\\text { Leslie } & \$ 350 \\\text { Jay } & \$ 300 \\\text { Kisten } & \$ 250 \\\text { Ivana } & \$ 200 \\\text { Matt } & \$ 150\end{array}$
-Assume that SkyMasters, Inc. follows the profit-maximizing rule and that the company charges a single price for skydiving. Calculate the company's total revenue.

• A) $1,650
• B) $1,500
• C) $1,000
• D) $900
• E) $600

---

Definitions:

Asch Paradigm

A research methodology used to study conformity to group pressure by asking participants to match line lengths.

Conformity

The act of adjusting one's behaviors, attitudes, or beliefs to align with those of a group or social norm.

Original Study

The initial research conducted on a specific topic, serving as the foundation for further investigation.

Solomon Asch

A psychologist renowned for his research on social psychology, especially conformity and his famous conformity experiments.