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For April 2021, the actual cost per ASM (available seat mile) for Southwest Airlines was approximately 12.30. This as our best estimate of marginal cost, and assuming the price elasticity of demand is -3.5, find the profit maximizing air fare for Southwest Airline.   A. $16.5.   B. $17.22   C. $26.5.   D. $35.5.   E. $45.5.

For April 2021, the actual cost per ASM (available seat mile) for Southwest Airlines was approximately 12.30. This as our best estimate of marginal cost, and assuming the price elasticity of demand is -3.5, find the profit maximizing air fare for Southwest Airline.   A. $16.5.   B. $17.22   C. $26.5.   D. $35.5.   E. $45.5.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For April 2021, the actual cost per ASM (available seat mile) for Southwest Airlines was approximately 12.30. This as our best estimate of marginal cost, and assuming the price elasticity of demand is -3.5, find the profit maximizing air fare for Southwest Airline.

  A.

$16.5.
  B.

$17.22
  C.

$26.5.
  D.

$35.5.
  E.

$45.5.
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