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<p>[quote user="greyhounds"]</p> <p> </p> <div class="quote-header"> </div> <blockquote class="quote"> <div class="quote-user">Sam1</div> <div class="quote-content">Marginal costing usually refers to the incremental cost of adding capacity. It could apply to making greater use of existing capacity, but it would only apply if there was an incremental cost associated with increased use of the capacity, i.e. more service personnel are required, addition weight increased use consumption, etc. Marginal pricing can apply to adding capacity or increasing the use of existing capacity.</div> </blockquote> <div class="quote-footer">I have no disagreement with what you say in this post.  </div> <p>... The statement was made that marginal costs per additional unit of sale decline with additional volume.  (Basically that's what was said.)</p> <p>I disagree with the idea that the marginal costs decline with additional volume.  I maintain that marginal costs are constant...[/quote]</p> <p>You are correct.  The marginal costs associated with the Heartland Flyer would not decline because of greater volume. I don't recall making that statement.</p> <p>Greater volume, i.e. in crease in the number of passengers, would cause the average cost per passenger to decline assuming all other variables are held constant.</p> <p>Adding another coach to the Heartland Flyer would be an incremental increase in capacity, and it would involve some incremental expense.</p> <p>If an increase in existing capacity required addition on-board personnel, i.e. cafe car attendant(s), conductors, etc., this would be an example of an incremental increase in existing capacity, assuming that the definition of capacity is restricted to the number of seats available.  </p> <p>A question was raised about an extra Superliner car that is available for the Heartland Flyer in a previous post.  The Flyer normally operates with three coaches.  However, there is a fourth coach available, that frequently runs on the weekends, but otherwise it is parked in Fort Worth.  Or that had been the case prior to my last visit to Cow Town, which was three months ago. </p>
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