Answered: Consider the table below, which shows…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the table below, which shows seven potential customers who are interested in taking a 30-minute helicopter ride. The helicopter has room for eight people, including the pilot. The cost to the helicopter company of taking on each additional passenger is $5 Part 1. If the company can charge only one price, what should it be? $_______ Part 2. Suppose instead of charging one price for adults and one price for children, the helicopter company decides to charge different prices for young children (ages 12 and under), teenagers, adults, and senior citizens (those people 65 and older). What price should the firm charge for each group, and what total profit could it earn as a result? Senior citizens: _______ Adults: _________ Teenagers: _______ Young children: _________ Total profit: $_________

he pilot. Th
Customer
Amelia
Orville
Wilbur
Neil
Sally
Mae
Charles
Maximum willingness to pay
$80
$70
$40
$50
$60
$100
$20
Age
66
34
17
16
19
49
9

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