Scenario 15-5 An Airline Knows That There Are Two Types of Travelers

question 256

Multiple Choice

Scenario 15-5
An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc.
-Refer to Scenario 15-5. How much profit will the airline earn if it engages in price discrimination?

• A)-$5,000
• B)$40,000
• C)$55,000
• D)$75,000

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Definitions:

Objective Choices

Decisions made from a neutral standpoint, without personal bias or subjective influence.

Reframed

The process of changing the perspective on a situation to view it in a different, often more positive, light.

Unifying Themes

Broad, overarching concepts or ideas that integrate and bring together various elements or aspects of a study, theory, or narrative.

Linguistic Relativity

The hypothesis that the structure of a language affects its speakers' world view or cognition.