Answered

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Carlos has a van with 20 sears and charges $10 per person per ride to the airport from downtown. Carlos' cost of the trip is $140 for any number of passengers. On one trip, Carlos has 19 seats filled when a person offers him $5 for the last seat. Should Carlos accept the offer?

Sagot :

Tundexi

Yes, Carlos should accept the offer because the marginal benefit exceeds the marginal cost.

Benefit of the complete trip = 20 seat * $10 per person per

Benefit of the complete trip = $200

Carlos' cost of the trip is $140.

Benefit of the incomplete seat trip = 19 seat * $10 + 19*$5

Benefit of the incomplete seat trip = $190 + $95

Benefit of the incomplete seat trip = $285

In conclusion, the answer is yes because since the marginal benefit exceeds the marginal cost.

Read more about marginal benefit:

brainly.com/question/10803575

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