On a certain route, an airline carries 8000 passengers per month, each paying $50. A market survey indicates that for each $1 increase in the ticket price, the airline will lose 100 passengers. Find the ticket price that will maximize the airline’s monthly revenue for the route. What is the maximum monthly revenue?

On a certain route, an airline carries 8000 passengers per month, each paying $50. A market survey indicates that for each $1 increase in the ticket price, the airline will lose 100 passengers. Find the ticket price that will maximize the airline’s monthly revenue for the route. What is the maximum monthly revenue?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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