Highlanders Go Marginal. Suppose that the owners of traditional horse-drawn carriages in the Tatra mountains of Poland observed that up to half the seats during evening rides through the Chochołowska...

Highlanders Go Marginal. Suppose that the owners of traditional horse-drawn carriages in the Tatra mountains of Poland observed that up to half the seats during evening rides through the Chochołowska Valley are empty. The average cost of an evening ride through the valley is 150 Polish zloty, a figure that includes fixed costs such as stable fees. A half-full evening ride generates only 200 Polish zloty of revenue.

a. Use the marginal principle to explain why the owners of horse-drawn carriages continued evening rides through the valley.

b. It will be sensible to run a half-empty evening ride if the marginal __________ of the ride is __________ than __________ Polish zloty.