Question

An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc. How much profit will the airline earn if it sets the price of each ticket at $600?a. -$5,000b. $15,000c. $40,000 d. $60,000

Answer 1

10. Refer to Scenario 15-1. How much profit will the airline earn if it sets the price of each ticket at $600?

a. -$5,000

b. $15,000

c. $40,000 d. $60,000

11. Refer to Scenario 15-1. How much additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $600 per ticket?

a. $15,000

b. $25,000

c. $40,000 d. $70,000

Step-by-step explanation: