Seven Passengers Are on a Waiting List for an Overbooked

question 78

Short Answer

Seven passengers are on a waiting list for an overbooked flight. As a result of cancellations, three seats become available. How many different ways can those three available seats be filled regardless of the order?

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Definitions:

Profit-Maximizing

A strategic goal where a business seeks to achieve the highest possible profit from its operations and sales activities.

Marginal Revenue

The supplementary income obtained from the sale of an extra unit of a product or service.

Total Revenue

The aggregate monetary gain a corporation obtains from its product or service sales, without accounting for any expenditures.

Demand Schedule

A table outlining the different quantities of goods or services that consumers are interested in and can feasibly buy at numerous price levels.