citlali45g1 citlali45g1
  • 17-01-2019
  • Business
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what marginal costs and benefits might a tour boat operator consider when deciding whether to purchase a new boat?

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lucic
lucic lucic
  • 29-01-2019

Answer

The tour boat operator needs to decide whether to buy a new boat to increase the income obtained per day or increase the number of trips made per day and avoid buying a new boat.

Explanation

Marginal cost measures the change in cost over the change in quantity. Marginal benefit is a measurement of change in benefits over change in quantity. The boat operator is going to buy a new boat. Will the marginal cost (how the boat cost) be greater than the marginal benefit( income from increased number of boats).


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