Marginal cost, elasticity of demand, and market discrimination

Earl may have never taken an economics class, but he knew exactly how to price those charters. He knew his marginal costs set the floor (including capacity costs during the peak season), that our demand depended entirely on what we could afford to pay, and that whatever he charged for these charters would have no effect on any other prices the C&TS charged. It was a great win-win situation, that allowed the C&TS to empty our pockets of as much as we could afford in return for some great pix, and Kyle made some contribution to overhead and profit that they would not have otherwise booked.

JBWX



Edited 2 time(s). Last edit at 03/02/2010 11:54AM by John West.