The average cost per seat on the 75-passenger Get-There-Safe Bus company's trip from Milwaukee to Minneapolis,on which no refreshments are served,is $37.In advance of a particular trip,three seats remain unsold.The bus company could increase its profit only if it
A) charged any ticket price above $0 for the three remaining seats.
B) charged at least $18.50 for each of the three remaining seats.
C) charged at least $37 for each of the three remaining seats.
D) paid three people to occupy the three remaining seats.

Question

Quizplus · Accepted Answer

Charging any ticket price above $0 for the remaining seats would increase profit because the fixed costs are already covered by the sold seats.

The Average Cost Per Seat on the 75-Passenger Get-There-Safe Bus