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

question 247

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 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:

Neurosurgery

The surgical specialty concerned with the prevention, diagnosis, surgical treatment, and rehabilitation of disorders which affect any portion of the nervous system.

Focal

Relating to the main point of interest or activity, or pertaining to a localized area or region in a particular field.

Autonomic Features

Characteristics or traits controlled by the autonomic nervous system, responsible for regulating involuntary bodily functions like heart rate and digestion.

Grand Mal

A type of seizure that involves a loss of consciousness and violent muscle contractions, also known as a tonic-clonic seizure.