An Airline's Revenue, , Is a Function of the Number

question 38

Short Answer

An airline's revenue, , is a function of the number of full price tickets, x, and the number of discount tickets, y, sold. When 300 full price and 600 discount tickets are sold, R = $225,000. Use partial derivatives and to estimate revenue when x = 304 and y = 603.

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Definitions:

Indifference Curves

Graphical representations showing different combinations of two goods that provide the same level of utility to the consumer.

Bundle

A combination of various goods or services sold together as a single package.

Constants

Values that do not change, remaining the same in various contexts or equations.

Indifference Curves

A graphical representation showing different combinations of two goods that provide equal satisfaction and utility to a consumer.