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

question 146

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 sets the price of a ticket at $600?

• A) -$5,000
• B) $15,000
• C) $40,000
• D) $60,000

Recognize the influence of uncertain and risk environments on managerial decisions.

Differentiate between classical and behavioral decision theories.

Understand the concept of bounded rationality in decision-making.

Recognize common mistakes in problem definition within the decision-making process.

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Definitions:

Organisms

Living entities that can carry out life processes independently or in a colony, such as animals, plants, and bacteria.

Phylogeny

The evolutionary history and relationship of an organism or group of organisms.

Evolutionary Relationships

The connections among species or groups of organisms that arise from a common ancestor, elucidated through the study of physical characteristics, genetics, and comparative anatomy.

Classifying Organisms

The scientific practice of organizing and categorizing living organisms into groups based on shared characteristics.