The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanooga.In advance of a particular trip,four seats remain unsold.The bus company could increase its profit only if it
A)charged any ticket price above $0 for the four remaining seats.
B)charged at least $11.25 for each of the four remaining seats.
C)charged at least $45 for each of the four remaining seats.
D)paid four people to occupy the four remaining seats.

Question

Quizplus · Accepted Answer

If the seats are unsold, they generate no revenue. Selling them at any price above $0 increases revenue without increasing costs, thus increasing profit.

The Get-There-Safe Bus Company Incurs an Average Cost of $45