Exclusive carrier on a local air route

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Reference no: EM1322878

Q. As the exclusive carrier on a local air route, a regional airline must conclude the number of flights it will provide every week also the fare it will charge. The estimated cost every flight is $2,000. It expects to fly full flights (100 passengers), so marginal cost (on a every passenger basis) is $20.. The airline's estimated demand curve is P = 120 - 0.1Q, where P is the fare in dollars also Q is the number of passengers every week

a. Illustrate what is the airline's profit maximizing fare? Elucidate how many passengers does it carry every week, using Elucidate how many flights? Illustrate what is its weekly profit?

Reference no: EM1322878

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