Scenario 14-5 An Airline Knows That There Are Two Types of Travelers

question 133

Multiple Choice

Scenario 14-5
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 14-5.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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Definitions:

Spell-checker

A software tool or program that identifies and possibly corrects spelling errors in texts.

Too

A word indicating an excessive amount or degree of something.

Two

The numerical value representing a quantity equal to one plus one, often considered in contexts of comparison or difference.

Drafting

The preliminary stage of writing or drawing up documents, plans, designs, or legislation before they are finalized.