(11.7). An airline has been collecting data to estimate demand for flights between Greenville, South Carolina, and Seattle, for which it would be the only provider. It has estimated this demand to be p = 1,000 - 2q. The total cost (in dollars) of this flight is TC(q)-50,000+20q. If the airline cannot discriminate, what price does it charge, how many tickets does it sell, and what is its' profit? Ⓒq-205, p-$310, profit-$125,600 q-245, p-$510, profit-$70,050 Ⓒq-245, p-$310, profit-$70,050 Ⓒq-205, p-$510, profit-$125,600 In addition to that, If the airline can do first- degree price discrimination (based on information it receives through its partners during online booking), how many tickets does it sell, and what is its profit?
(11.7). An airline has been collecting data to estimate demand for flights between Greenville, South Carolina, and Seattle, for which it would be the only provider. It has estimated this demand to be p = 1,000 - 2q. The total cost (in dollars) of this flight is TC(q)-50,000+20q. If the airline cannot discriminate, what price does it charge, how many tickets does it sell, and what is its' profit? Ⓒq-205, p-$310, profit-$125,600 q-245, p-$510, profit-$70,050 Ⓒq-245, p-$310, profit-$70,050 Ⓒq-205, p-$510, profit-$125,600 In addition to that, If the airline can do first- degree price discrimination (based on information it receives through its partners during online booking), how many tickets does it sell, and what is its profit?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14: Pricing Techniques And Analysis
Section: Chapter Questions
Problem 1E
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