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

question 430

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 additional profit can the airline 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:

Resolution

The ability of a camera lens to define images in sharp detail.

Lumière Brothers

Pioneers of the film industry, noted for their invention of the Cinématographe and for holding the first public movie screening in 1895.

Photogénie

A cinematic concept that suggests certain objects or faces are imbued with an essence that makes them particularly suited to filmic representation.

Depth of Field

In photography and cinematography, depth of field is a measure of the distance between the nearest and farthest objects in a scene that appear acceptably sharp in an image.