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:

Ambition

A strong desire to achieve success, power, or distinction in a chosen field or endeavor.

Aggressiveness

A behavior characterized by hostility or attack, often with the intention to dominate or defeat another.

Emerge as a Leader

The process through which an individual rises to a leadership position by demonstrating skills, initiative, and the ability to influence others.

Genuinely Cares

To have a sincere interest and concern for the well-being and happiness of others.