ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question 1.
Suppose it costs XYZ Airline 120,000 dollars to fly its 500 - seater A380 passenger plane from Dubai to London. The flight service does not include drinks/meal. The passengers pay for food and drinks separately on demand.
(a): What is the average cost of a Dubai – London seat on this plane?
(b): Currently XYZ airline charges 550 dollars for a Dubai-London ticket (economy) on this plane. Suppose 10 economy seats are left unsold when the plane is starting to board the passengers. A standby passenger offers to pay 250 dollars for a seat. Should the airline sell the ticket to this passenger at 250$? Yes or No? Briefly explain your reaso
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- Problem 4/ A firm produced two types of television x of type A and y of type B per year (in thousands). If the revenue and cost equations for the year are (in million dollars) R(x, y) = 3x+6y C(x, y) = x2 + y2-3x-2y-8 Determine how many of each type of television should be produced per year to maximize profit? What is the maximum profit?arrow_forwardI have two utility equations U= x^2 + y^2 U = x + ay Please draw the IC curves for each of them. And also, find the cost function associated with them and detailed steps. P.s The cost function for U= x+ay is u.min((p(x),p(y)/a)), but do not know how to get iarrow_forwardThe manufacturer of Brand A automobile tires claims that its tire can save 120 gallons of fuel over 54,000 miles of driving, as compared to a popular competitor (Brand B). If gasoline costs $4.00 per gallon, how much per mile driven does this tire save the customer (Brand A versus Brand B)? The savings are $ per mile. (Round to three decimal places.)arrow_forward
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