A Train Company Is Considering Applying Yield Management Principles to Its

question 118

Essay

A train company is considering applying yield management principles to its ticket sales. Suppose that there is no variable cost in the operation, only a fixed cost to run each train. The company decides that a student ticket will sell for half the cost of a business ticket. If demand for the business tickets is given by 50-3x where x is the sales price of a business ticket and demand for student tickets is given by 70-y^2 where y is the price of a student ticket how much should the company charge for tickets to maximize revenue?

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Definitions:

Weight Loss

The reduction of total body mass, due to loss of fluid, body fat, or lean mass.

Dieting

The practice of regulating one's food intake with the intent of losing, maintaining, or gaining weight, often involving specific nutritional plans or restrictions.

Colostomy

A surgical procedure that creates an opening (stoma) from the colon to the outside of the abdomen to divert waste.

Stage of Adjustment

The phase in a process of change where individuals start to come to terms with the new situation or environment.