Lofty airlines has a flight for which the regular ticket price is $200 and the variable costs per passenger are $50. fixed costs assigned to each flight are $12,000. each flight has a capacity of 125 seats, with an average of 95 seats sold at the regular price. to attract customers to the last 30 unsold seats, lofty discounts the tickets by 50% for standby passengers. the contribution margin per standby passenger is
a. $25
b. $150
c. $100
d. $50.

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game.expert answer