Scenario 15-2
Vincent Operates a Scenic Tour Business in Boston

Scenario 15-2
Vincent operates a scenic tour business in Boston. He has one bus that can fit 50 people per tour and each tour lasts 2 hours. His total cost of operating one tour is fixed at $450. Vincent's cost is not reduced if he runs a tour with a partially full bus. While his cost is the same for all tours, Vincent charges each passenger his/her willingness to pay: adults $18 per trip, children $10 per trip, and senior citizens $12 per trip. At those rates, on a typical day Vincent's demand is:
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$$\begin{array} { | c | c | c | } \hline \text { Passenger Type } & \begin{array} { c } \text { Willingness to Pay } \\\text { (Dollars per unit) }\end{array} & \begin{array} { c } \text { Quantity Demanded } \\\text { (Units) }\end{array} \\\hline \text { Adult } & 18 & 70 \\\hline \text { Children } & 10 & 25 \\\hline \text { Senior Citizens } & 12 & 55 \\\hline\end{array}$$ Assume that Vincent's customers are always available for the tour; therefore, he can fill his bus for each tour as long as there is sufficient total demand for the day.
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-Refer to Scenario 15-2. What is Vincent's total revenue on a typical day?

A) $1,500
B) $1,800
C) $2,170
D) $2,700

Correct Answer:

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