Suppose a 50-seat bus is about to depart from Boston to New York with five empty seats. The total cost to the bus company of the trip is $1,000 and no services, food, or beverages are provided to passengers. Use marginal analysis to develop conditions under which the bus company would be willing to sell tickets for the five remaining seats.
A. The bus company would be willing to sell the five remaining tickets at a price of at least $20 each to cover the cost per seat of those passengers.
B. The bus company would be willing to sell the five remaining tickets at any price over $0 because there is no additional cost of five more passengers.
C. The bus company would not be willing to sell the five remaining tickets because it already covered the cost of the trip with the revenue from the 45 passengers on board.
D. The bus company would be willing to sell the five remaining tickets at a price of at least $25 each because they need to make a profit on each passenger.
Answer: B
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