Scenario 15-6 An Airline Knows That There Are Two Types of Travelers

question 357

Multiple Choice

Scenario 15-6
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 15-6.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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