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:

Natural Selection

A process by which species adapt to their environment as individuals with beneficial traits survive and reproduce more successfully than others.

Behaviourism

A theory of learning based on the idea that all behaviors are acquired through conditioning, initiated by interactions with the environment.

John Watson

An American psychologist often cited as one of the founders of behaviorism, emphasizing the importance of observable behaviors over internal phenomena like thoughts and feelings.

Conscious Experience

The subjective awareness of one's thoughts, feelings, and environment, often contrasted with unconscious processes.