Question

Suppose a whale-watching trip in alaska costs orca-spotters tours $800 per run. each whale-watching trip can hold 25 tourists, meaning that the cost per seat is $32.00 regardless of how many people are on board. assume that orca-spotters tours would like to maximize profits.

Answer 1

Well if they are trying to maximize profits then they need to charge more per seat. At 25 seats costing $32.00 per seat you will break even. If the price is not altered then they will not make a profit. I would up the price at least 30%-50% so that they will make a respectable amount of profit on each seat.