Business, 29.10.2019 22:31 SRTBANDIT6045

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.

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

12. if a monopolist can practice perfect price discrimination, the monopolist will a. eliminate consumer surplus.

eliminate deadweight loss.

maximize profits.

all of the above are correct.

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An airline knows that there are two types of travelers: business travelers and vacationers. for a p...

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