Complete the folowing table by computing total revenue, total cost, variable cost, and profit for each of the prices listed. (Hint: Be sure to enter aminus sign before the number if the numeric value of an entry is negative.)PriceTotal RevenueTotal CostVarlable CostProfit(Dollars per ticket)(TR)(TC)(VC)(TR-TC)(Dollars)(Dollars)(Dollars)(Dollars)1,00040,000-40,000700400200Given this information, the profit-maximizing price isper ticket, andseats out of 100 will be purchased.In this case, which of the following statements are true about the market at this price-quantity combination? Check all that apply.O Total revenue is greater than variable cost.O The airline is operating at too big a loss and should, therefore, cancel this flight.O Profit is positive.O Price is less than average total cost.If fixed cost increases to $57,500, does this change the production decision of the airline in the short run?O YesO NoTrue or False: Operating a flight without full capacity should never happen in the short run because it cannot be profitable.O TrueO False Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost ofoperating a 100-seat plane for various numbers of passengers.Total CostNumber of Passengers (Dollars per flight)40,0001060,0002065,0003068,0004070,0005071,0006072,5007073,5008074,0009074,30010074,500Given the information presented in the previous table, the fixed cost to operate this flight is sAt each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for theduration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow.PriceQuantity Demanded(Dollars per ticket)(Tickets per flight)1,0007003040090200100

NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered. 1. Fixed cost is the cost of production which is incurred at 0 level of production. a) Given the information presented in the first table showing, number of passengers and total cost, fixed cost can deduced as $40,000 as when there are 0 passengers then also total cost is $40,000. b) To calculate TR,TC,VC, Profit: Price Qauntity Total Revenue Total Cost Variable Cost Profit 1000 0 0 40000 0 -40,000 700 30 21000 68,000 28000 -47000 400 90 36000 74300 34300 -38300 200 100 20000 74500 34500 -54500 c) Since there are losses at all the points asked in the table thus there is not profit maximizing price. Only if we see where is the least loss, then its when the price is $400 per ticket and seats are 90.

Business

Economics

Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Total Cost Number of Passengers (Dollars per flight) 40,000 10 60,000 20 65,000 30 68,000 40 70,000 50 71,000 60 72,500 70 73,500 80 74,000 90 74,300 100 74,500 Given the information presented in the previous table, the fixed cost to operate this flight is At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for the duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Price Quantity Demanded (Dollars per ticket) (Tickets per filight) 1,000 700 30 400 90 200 100

Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Total Cost Number of Passengers (Dollars per flight) 40,000 10 60,000 20 65,000 30 68,000 40 70,000 50 71,000 60 72,500 70 73,500 80 74,000 90 74,300 100 74,500 Given the information presented in the previous table, the fixed cost to operate this flight is At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for the duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Price Quantity Demanded (Dollars per ticket) (Tickets per filight) 1,000 700 30 400 90 200 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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