Question
Offered Price $8.00

On an air rout, an ailine offers two classes of service - busienss (B)

Question # 00580097
Subject: Economics
Due on: 08/29/2017
Posted On: 08/29/2017 07:24 AM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
97779
Tutorials:
98002
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question

Price vs. Capacity Problem

On an air rout, an ailine offers two classes of service: busienss (B) and economy (E).

The respective demands are given by:

For B - P= 540-.5Q

For E - P= 380-.25Q

Because of ticketing restrictions business travelers cannot take advantage of economy's low fare. The airline operates two flights daily. Each Flight has a capacity of 200 passengers. The cost per flight is $20,000.

a- How would the airline maximize the total revenue it obtains from the two flights.

b-What fares should the airline charge and how many passengers will buy tickets of each type? Keeping in mind that max revenue is obtained by setting MRb=MRe

c-Suppose the airline is conserving promoting a single "value fare" to all passengers on this route. Find the optimal single fare using spreadsheet optimizer.

Tags service busien claes offers ailine rout airline revenue fare flight paengers capacity charge manypaengers tickets fares type maximize total itobtains flightsbwhat mind optimal route singlefare using optimizer spreadsheet singlevalue promoting obtainedby 20000a setting mrbmrecsuppose conserving keeping

Tutorials for this Question
Available for
$8.00

On an air rout, an ailine offers two classes of service - busienss (B)

Tutorial # 00578062
Posted On: 08/29/2017 07:24 AM
Posted By:
Best Tutors for school students, college students dr.tony
Expert tutors with experiences and qualities
Questions:
97779
Tutorials:
98002
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview …busienss xxxxx an xxx rout,…
Attachments
On_an_air_rout,_an_ailine_offers_two_classes_of_service_-_busienss_(B).ZIP (18.96 KB)
Preview not available.
Purchase this Tutorial @ $8.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
Loading...