User Account

All Pages

What prices will the airline charge of the three

Assignment Help Business Economics
Reference no: EM132559031

Suppose an airline flying on the New York - Chicago route has estimated the demand curves for three different types of customers: business (no advance purchase), leisure (7 day advance puchase), and discount (14 day advance purchase) travellers. They are: Business: P = 600 - Q and MR = 600 - 2Q Leisure: P = 500 - 2Q and MR = 500 - 4Q; Discount: P = 400 - 3Q and MR = 400 - 6Q. Assume there is only a one class of service, hence the marginal cost of providing the service is equal for all customers and is $200. What prices will the airline charge to each of the three different segments of customers.

Reference no: EM132559031

Questions Cloud

First mover or last mover adavantage : Is this a game with a first mover or last mover adavantage? Explain briefly
Increasingly sophisticated in cyber security : Political interference increasingly common and increasingly sophisticated in cyber security. Describe how the thread can be mitigated.
What is the price variance : It is budgeted that 15 yards of raw material can produce 10 jackets. What is the price variance? What is the quantity variance
Should green cord company accept the outside supplier : Should Green Cord Company accept the outside supplier's offer? Show computation. Green Cord Company manufactures a variety of IPhone charging cords.
What prices will the airline charge of the three : What prices will the airline charge to each of the three different segments of customers.
Vehicle hacking and data theft increases on cybersecurity : Describe how the trend is a threat to personal and/or corporate security. Describe how the thread can be mitigated.
Should green cord accept the outside offer : Should Green Cord accept the outside offer? How many boxes of cords should be purchased from the outside supplier and how many should be made by Green Cord?
What would happen to the prices of exports : If you were exporting US made products to Europe, what would happen to the prices of your exports? Explain briefly.
How the chosen topic has impacted the workforce : The Civil Right Rights Act of 1964. Each group member will pick a topic and thoroughly discuss the chosen topic. You should tell (1) why it is important.

Reviews

Write a Review

Business Economics Questions & Answers

  Joint venture of australian east coast brick operations

CSR and Boral have announced the intention to form a joint venture of Australian east coast brick operations, citing reduced brick usage as a major cause

  Effective annual rate being paid on the loan

If the installment plan is chosen, what is the effective annual rate being paid on the "loan"? (Answer: 65.3%)

  Discuss the uses of elasticity of demand

Using appropriate diagrams and notations,carefully explain the relationship b/n elasticity, total revenue and marginal revenue. 2,discuss the uses of elasticity of demand.

  1 describe the schumpeterian notion of creative destruction

1. describe the schumpeterian notion of creative destruction. how does it compare to kirzners view of the

  Allocation of land in economy to its most productive uses

Why is rent not needed to make land available, but very useful in guiding the allocation of land in the economy to its most productive uses?

  Marginal product of capital is decreasing

What does it mean that marginal product of capital is decreasing? Show the marginal products are diminishing in the cobb-douglas case. Determination of steady state capital per worker consider the steady state capital per worker k*, how is k* affecte..

  Context of increased competition for health care dollars

Evaluate the decision-making process and its effect within the context of increased competition for health care dollars. Assess the wide range of challenging issues that you perceive will over the next five years affect NURSING HOMES.

  What is its supply of loanable funds

A country has national saving of $70 billion, government expenditures of $20 billion, domestic investment of $30 billion, and net capital outflow of $40 billion. What is its supply of loanable funds?

  Determine patent amortization expense for the current year

Voss Company acquired patent rights on January 6, 2011, for $480,000. The patent has a useful life equal to its legal life of eight years. On January 3, 2014, Voss successfully defended the patent in a lawsuit at a cost of $80,000. Determine the pate..

  Calculate price elasticity of demand

Calculate price elasticity of demand (using the point elasticity formula) at the following amounts of CLO along this demand curve: QD=4000, QD =2500, QD =1000.

  Economies of scale and economics of scope

Distinguish between economies of scale and economics of scope. Why do some firms produce multiple products lines, while some produce only one.

  Give two examples of possible net surpluses

Give two examples of possible net surpluses that three voters get from two possible political alternatives A and B. Construct your first example so that the alternative that wins a majority vote generates the maximum total net surplus. Make your seco..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd