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

question 368

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 additional profit can the firm earn by charging each customer their willingness to pay relative to charging a flat price of $600 per ticket?

• A) $15,000
• B) $25,000
• C) $40,000
• D) $70,000

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Definitions:

Motors

Machines that convert electrical energy into mechanical energy, commonly used for driving machinery.

Three-Phase Motor

An electric motor designed to operate on a three-phase alternating current supply, providing high efficiency and a smooth flow of power.

Lines

Refers to conductors that carry electrical power from one location to another, often used in the context of power transmission and distribution networks.

Consequent Pole Motor

A type of electric motor that achieves higher torque by varying the relationships between magnetic poles.