Scenario 15-11 Vincent Operates a Scenic Tour Business in Boston. He Has

question 67

Short Answer

Scenario 15-11
Vincent operates a scenic tour business in Boston. He has one bus which can fit 50 people per tour and each tour lasts 2 hours. His total cost of operating one tour is fixed at $450. Vincent's cost is not reduced if he runs a tour with a partially full bus. While his cost is the same for all tours, Vincent charges each passenger his/her willingness to pay: adults $18 per trip, children $10 per trip, and senior citizens $12 per trip. At those rates, on a typical day Vincent's demand is:
Assume that Vincent's customers are always available for the tour; therefore, he can fill his bus for each tour as long as there is sufficient total demand for the day.
-Refer to Scenario 15-11. One of Vincent's friends tells him he would be more profitable if he charged a single price of $18. Assuming no changes in consumer demand, what would Vincent's profit be if he charged every customer $18?

Understand the central role of culture in individual and group identity.

Identify differences in family patterns and their cultural implications.

Recognize the importance and challenges of maintaining home language in multilingual contexts.

Differentiate between dialogue and argument in communication.

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Definitions:

Supply of Seats

Refers to the number of seats available, often in context to theaters, vehicles, or other venues where seating is limited.

Ticket Prices

The cost assigned for admission to an event, such as a movie, concert, or sports event.

Perfectly Inelastic

A market situation where the quantity demanded or supplied is completely unresponsive to changes in price.

Stadium Capacity

The maximum number of spectators that a stadium can accommodate.