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When a bus with a seating capacity of 50 pas- sengers is carrying on 40 passengers. The cost of passenger ticket is 100. What would be the Marginal Cost of carrying one additional passen- ger?
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When a bus with a seating capacity of 50 pas- sengers is carrying on 4...
Calculation of Marginal Cost of carrying one additional passenger
Explanation
Marginal Cost is the additional cost incurred by a firm to produce or sell one more unit of a product. In this case, the marginal cost of carrying one additional passenger can be calculated by finding the additional revenue generated by carrying one more passenger and comparing it with the cost incurred to carry that passenger.
In this scenario, the bus has a seating capacity of 50 passengers, and it is carrying 40 passengers. The cost of a passenger ticket is 100. Therefore, the total revenue generated from 40 passengers is 40 x 100 = 4000.
If one more passenger is carried, the revenue generated would be 4100. Hence, the additional revenue generated by carrying one more passenger would be 4100 - 4000 = 100.
Therefore, the marginal cost of carrying one additional passenger is 100.
In conclusion, the marginal cost of carrying one additional passenger is the additional cost incurred to carry one more passenger, which can be calculated by finding the additional revenue generated by carrying one more passenger and comparing it with the cost incurred to carry that passenger.
- Seating capacity of the bus = 50 passengers
- Number of passengers on the bus = 40
- Cost of passenger ticket = 100
- Total revenue generated from 40 passengers = 40 x 100 = 4000
- Revenue that would be generated from 41st passenger = 4100
- Additional cost incurred to carry one more passenger = Revenue generated from 41st passenger - Revenue generated from 40 passengers
- Additional cost incurred to carry one more passenger = 4100 - 4000
- Additional cost incurred to carry one more passenger = 100
Explanation
Marginal Cost is the additional cost incurred by a firm to produce or sell one more unit of a product. In this case, the marginal cost of carrying one additional passenger can be calculated by finding the additional revenue generated by carrying one more passenger and comparing it with the cost incurred to carry that passenger.
In this scenario, the bus has a seating capacity of 50 passengers, and it is carrying 40 passengers. The cost of a passenger ticket is 100. Therefore, the total revenue generated from 40 passengers is 40 x 100 = 4000.
If one more passenger is carried, the revenue generated would be 4100. Hence, the additional revenue generated by carrying one more passenger would be 4100 - 4000 = 100.
Therefore, the marginal cost of carrying one additional passenger is 100.
In conclusion, the marginal cost of carrying one additional passenger is the additional cost incurred to carry one more passenger, which can be calculated by finding the additional revenue generated by carrying one more passenger and comparing it with the cost incurred to carry that passenger.
Community Answer
When a bus with a seating capacity of 50 pas- sengers is carrying on 4...
100
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When a bus with a seating capacity of 50 pas- sengers is carrying on 40 passengers. The cost of passenger ticket is 100. What would be the Marginal Cost of carrying one additional passen- ger?
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When a bus with a seating capacity of 50 pas- sengers is carrying on 40 passengers. The cost of passenger ticket is 100. What would be the Marginal Cost of carrying one additional passen- ger? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When a bus with a seating capacity of 50 pas- sengers is carrying on 40 passengers. The cost of passenger ticket is 100. What would be the Marginal Cost of carrying one additional passen- ger? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When a bus with a seating capacity of 50 pas- sengers is carrying on 40 passengers. The cost of passenger ticket is 100. What would be the Marginal Cost of carrying one additional passen- ger?.
When a bus with a seating capacity of 50 pas- sengers is carrying on 40 passengers. The cost of passenger ticket is 100. What would be the Marginal Cost of carrying one additional passen- ger? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When a bus with a seating capacity of 50 pas- sengers is carrying on 40 passengers. The cost of passenger ticket is 100. What would be the Marginal Cost of carrying one additional passen- ger? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When a bus with a seating capacity of 50 pas- sengers is carrying on 40 passengers. The cost of passenger ticket is 100. What would be the Marginal Cost of carrying one additional passen- ger?.
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