The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:

-Assume that SkyMasters follows the profit-maximizing rule and that the company charges a single price for skydiving.Which potential customer(s)will not purchase a skydiving experience?
A) Harold and Leslie
B) Kristen and Jay
C) Matt and Ivana
D) Harold
E) Matt

Question

The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:
 
-Assume that SkyMasters follows the profit-maximizing rule and that the company charges a single price for skydiving.Which potential customer(s)will not purchase a skydiving experience?
A) Harold and Leslie 
B) Kristen and Jay 
C) Matt and Ivana 
D) Harold 
E) Matt

Quizplus · Accepted Answer

Matt and Ivana will not purchase a skydiving experience if the price set by SkyMasters is higher than their willingness to pay, which is implied by the context of the question.

The Following Table Summarizes Six Potential Customers' Ages and Willingness