Five potential passengers are looking to take a ferry across…
Five potential passengers are looking to take a ferry across a lake. The passengers have the following willingnesses to pay for the crossing: Passenger 1= $100 Passenger 2 = $70 Passenger 3 = $50 Passenger 4 = $30 Passenger 5 = $10 The marginal cost to the ferry of each passenger is $20. If the ferry can successfully practice first-degree price discrimination, how many passengers will the ferry serve? (Assume there is no capacity constraint on the ferry, i.e. the ferry can seat all 5 if needed.)