Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for different customer loads are:

1 customer: $30

2 customers: $32

3 customers: $35

4 customers: $38

5 customers: $42

6 customers: $48

7 customers: $57

8 customers: $68.

What are your marginal costs for each customer load level?

Q	TC	MC	Total Rev	Profit
1	30		10	-20
2	32		20	-12
3	35		30	-5
4	38		40	2
5	42		50	8
6	48		60	12
7	57		70	13
8	68		80	12

Answer rating: 100% (QA)

Marginal Cost refers to incremental costs associated with increasing outpu... View the full answer