A plane from Cairo to Riyadh is about to take off, but it still has a few seats empty. If the average cost per seat is $500, what price should the airline charge passengers in standby to fill in those remaining seats? (Consider that quantitative decisions are made at the margin.) a. At least $1,000 b. Any price that will cover the additional cost of an additional passenger to the airline. c. Slightly more than $500 d. Exactly $500

A plane from Cairo to Riyadh is about to take off, but it still has a few seats empty. If the average cost per seat is $500, what price should the airline charge passengers in standby to fill in those remaining seats? (Consider that quantitative decisions are made at the margin.) a. At least $1,000 b. Any price that will cover the additional cost of an additional passenger to the airline. c. Slightly more than $500 d. Exactly $500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The selling price for hamburgers is $5.99, and the daily price-response function is: d(p) = 590 - 60p. What is the demand at this price? (Round your answer to the nearest integer). What is the seller's total contribution at this price? (Round your answer to the nearest integer.) What is the total customer surplus at this price? ( Round your answer to the nearest integer.)
The average ticket price for a concert at the opera house was $30. The average attendance was 5000. When the ticket price was raised to $33, attendance declined to an average of 4700 persons por performance. What should the ticket price be to maximize revenue for the opera house? (Assume a linear demand curve.) To maximize revenue, the price should be $ por ticket. (Type an integer or decimal rounded to two decimal places as needed. Simplify your answer.)
Refer to the article below: FRONT PAGE College Tuition Up Again College gets more expensive again. In-state tuition at public four-year colleges rose 2.3 percent in 2019-2020, to an average of $10,440 per year. Out-of-state students paid an average of $26,820 to attend. Private four-year colleges also saw even bigger price hikes: 3.4 percent-to an average of $36,880. Tuition prices have been outpacing general inflation rates for many years. Source: The College Board. If tuition keeps increasing at the same rate as in 2019-2020, how much will it cost to complete a degree at a private college in four years (2019-2023)? Hint: Future value = Present value x (1 + Growth in prices) Next year's tuition = This year's tuition x (1 + Growth in prices) Instructions: Round your responses to the nearest whole dollar. Tuition freshman year (2019-2020) Tuition sophomore year (2020-2021) Tuition junior year (2021-2022) Tuition senior year (2022-2023) Total tuition $ $ $ $ $
Hello please answer! What is a good or service that has become expensive/cheap due to (a) natural scarcity/abundance of supply or naturally high/low demand, and (b) artificial mean (e.g., government policy, competition restricting practices)?
You and your friends love to go fishing. There is a sporting goods store in your neighborhood that sells a fishing pole for $82 but costs the store $60, and a fully stocked tackle box that sells for $58 but costs $40. Assuming the mark-up policy is linear, determine the equation that relates price (P) to cost (C). Following this same mark-up policy for other items, what would be the price of a pair of waders which cost the company $80?
Suppose that the demand curve for tickets to see a football team is given by Q = 36,000 - 4p and marginal cost = 1000 per customer. (Ten dollars as this is expressed in pennies) This can also be written as D(P) = 9000 -0.25 Q. MR = 9000-0.5 Q Suppose there are only 45,000 seats in the stadium. We would like for you to solve for the PRICE (in dollars) that the PROFIT MAXIMIZING UNREGULATED MONOPOLIST would charge. $30 O $90 $60 $50 O $70
Assume your theater will not sell a ticket for less than 80% of regular price $$$ (my assigned price is 145), but will sell one ticket for one performance at 80% of regular price plus $5 and two performances for 80% of regular price plus $10 for each ticket, for small numbers of movies, x, the theater’s supply curve is modeled by p=S(x). Write down your supply function. Find the equilibrium point. (make sure to provide both x and y coordinates and label it on the graph)
Jenny is going to rent a truck for one day. There are two companies she can choose from, and they have the following prices. Company A charges $90 and allows unlimited mileage. Company B has an initial fee of $55 and charges an additional $0.70 for every mile driven.
Consider the demand function d(p)=300e^−0.01p^2 items purchased when charging p dollars per item. Currently the price is 9 dollars per item. Use marginal analysis to estimate the decrease in demand when the price increases by 0.3 dollars per item. Demand would decrease by approximately _____ items. Round your answer to three decimal places.
Tuition has risen every year since 1980 and at the same time enrollment has steadily increased. Which (demand or supply curve) shifts to which direction (left or right)? - demand curve shifts to the left - demand curve shifts to the right - supply curve shifts to the left - supply curve shifts to the right Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.
An economist estimates the value of a nature preserve by calculating the price premium people pay for houses located adjacent to the preserve. This is an example of what type of economic valuation? a. Hedonic pricing b. Replacement cost methods c. Contingent valuation d. Travel cost models e. Defensive expenditures
Funny Bunny is considering installing ice-cream stalls on Turtle Beach. The length of the beach is 5 miles long. On average, in a week, there are 1,000 swimmers come to beach and each value an ice-cream at $5. Transportation costs are $2.5. each ice cream costs $0.50 to make and there are $40 overhead costs per stall.1.find the optimal number of stalls for Funny Bunny?2.what is the profit at optimal number of stalls?