Scenario 15-5 An Airline Knows That There Are Two Types of Travelers

question 101

Multiple Choice

Scenario 15-5
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 15-5. How much profit will the airline earn if it sets the price of each ticket at $600?

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

Be familiar with the mechanisms available for dispute resolution in international business, including arbitration and the court system.

Recognize the implications of space exploration laws on corporate activities in space, including jurisdiction and property rights.

Identify legal protections against environmental harm and human rights violations under international law.

Assess the impact of national and international laws on strategic business decisions in the context of globalization.

---

Definitions:

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how spread out the values in a data set are.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, marking preferences of equal utility.

Risk-Averse

A characteristic describing an investor or decision-maker who prioritizes avoiding loss over making a gain, typically favoring safer investments.

Mean-Standard Deviation Graph

The mean-standard deviation graph is a visual representation used in finance to display expected returns (mean) of an investment against its risk (standard deviation).