Scenario 15-6
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.
-Refer to Scenario 15-6.How much additional profit can the firm 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
Correct Answer:
Verified
Q95: Antitrust laws may
A)enhance the ability of firms
Q150: A movie theater can increase its profits
Q152: When deciding what price to charge consumers,
Q155: Price discrimination explains why Ivy League universities
Q160: Which of the following statements comparing monopoly
Q372: Customers who purchase a book from Dave's
Q374: Table 15-6
Dreher's Designer Shirt Company,a monopolist,has the
Q378: Table 15-6
Dreher's Designer Shirt Company,a monopolist,has the
Q379: Table 15-6
Dreher's Designer Shirt Company,a monopolist,has the
Q380: Table 15-6
Dreher's Designer Shirt Company,a monopolist,has the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents