The average cost per seat on the 50-passenger Floating-On-Air Bus company's trip from Kansas City to St. Louis, on which no refreshments are served, is $45. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if it a. charged any ticket price above $0 for the three remaining seats. b. charged at least $15 for each of the three remaining seats. c. charged at least $45 for each of the three remaining seats. d. paid three people to occupy the three remaining seats.

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Business

Grant

11 August, 00:20

The average cost per seat on the 50-passenger Floating-On-Air Bus company's trip from Kansas City to St. Louis, on which no refreshments are served, is $45. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if it a. charged any ticket price above $0 for the three remaining seats. b. charged at least $15 for each of the three remaining seats. c. charged at least $45 for each of the three remaining seats. d. paid three people to occupy the three remaining seats.

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Reuben Roberts · Answer 1

A) charged any ticket price above $0 for the three remaining seats.

Explanation:

Seats on a bus are either used or not, and like any other service, they cannot be stocked. That means that the 3 unused seats cannot be added to another trip, the maximum number of seats that can be sold will remain at 50.

It doesn't matter at what price the company sells the 3 remaining seats, as long as it is above $0, it will increase its profits.