The following table states pre-Covid round-trip airfares (for a two-week trip in February, booked well in advance) from Seattle to Atlanta and New York: Atlanta New York (JFK) Economy class $398 $288 Business class $1,050 $1,994 Atlanta and New York are approximately equal distances from Seattle (the posted flight times are 4 hours 50 minutes and 5 hours 25 minutes, respectively). Give a brief explanation for why the incremental cost of business class is so much lower on the Atlanta route
The following table states pre-Covid round-trip airfares (for a two-week trip in February, booked well in advance) from Seattle to Atlanta and New York: Atlanta New York (JFK) Economy class $398 $288 Business class $1,050 $1,994 Atlanta and New York are approximately equal distances from Seattle (the posted flight times are 4 hours 50 minutes and 5 hours 25 minutes, respectively). Give a brief explanation for why the incremental cost of business class is so much lower on the Atlanta route
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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The following table states pre-Covid round-trip airfares (for a two-week trip in February,
booked well in advance) from Seattle to Atlanta and New York:
Atlanta New York (JFK)
Economy class $398 $288
Business class $1,050 $1,994
Atlanta and New York are approximately equal distances from Seattle (the posted flight times
are 4 hours 50 minutes and 5 hours 25 minutes, respectively).
Give a brief explanation for why the incremental cost of business class is so much lower on the
Atlanta route
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