Related to the Economics in Practice on page 172: When there are only a few empty cabins on a large cruise ship, the marginal cost of adding extra passengers to occupy those cabins
A) is probably very low.
B) will be negative.
C) is generally quite high.
D) will primarily depend on the number of customers waiting to travel.

Question

Quizplus · Accepted Answer

When there are only a few empty cabins on a large cruise ship, the marginal cost of adding extra passengers to occupy those cabins is probably very low. This is because the fixed costs associated with operating the ship (such as fuel, crew salaries, and maintenance expenses) are already being paid for regardless of the number of passengers on board. Therefore, adding extra passengers to fill up the empty cabins will only increase the variable costs (such as cleaning, food and beverage, and entertainment expenses) by a relatively small amount.

Related to the Economics in Practice on Page 172: When