An airline flies a daily flight from City A to City B. Currently they sell each ticket for $200, and on average 100 people take the flight, so their revenue per flight is100 tickets × $200/ticket = $20,000. They are interested in seeing whether they can increase their revenue by changing the price of a ticket. Based on marketresearch they discover that for every $2 increase in ticket price, one fewer person will buy a ticket. Similarly for every $2 decrease in ticket price, one moreperson will buy a ticket. Complete parts (a) and (b).(a) What ticket price would maximize the airline's revenue?The ticket price that would maximize the airline's revenue is $(Type a whole number.)

Analyzing the revenue of a company provides insights into a company's financial position which is…

Answered: An airline flies a daily flight from…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter8: Evolutionary Solver: An Alternative Optimization Procedure

Section8.6: Fitting An S-shaped Curve

Problem 9P

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