Suppose the cost of flying (operating) a 300-seat plane from Washington D.C. to New York City for Delta airline is $35,000. The average price for each ticket sold is $200. There are 10 empty seats on a flight tonight. If the marginal cost of having one customer is $50, Delta airline should a.sell the last 10 seats at $40 per ticket to fill up the cabin. b.not sell the last 10 seats for anything lower than $200 per seat c.sell the last 10 seats for at least $50 per seat d.not sell any extra ticket for that flight because they have made enough money from that flight already

Airline will choose the alternative which would provide it the best possible profits . Profits =…

Answered: Suppose the cost of flying (operating)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the cost of flying (operating) a 300-seat plane from Washington D.C. to New York City for Delta airline is $35,000. The average price for each ticket sold is $200. There are 10 empty seats on a flight tonight. If the marginal cost of having one customer is $50, Delta airline should

	a.	sell the last 10 seats at $40 per ticket to fill up the cabin.
	b.	not sell the last 10 seats for anything lower than $200 per seat
	c.	sell the last 10 seats for at least $50 per seat
	d.	not sell any extra ticket for that flight because they have made enough money from that flight already

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