An airline flies a daily flight from City A to City B. Currently they sell each ticket for $400, and on average 400 people take the flight, so their revenue per flight is 400 ickets × $400/ticket = $160,000. They are interested in seeing whether they can increase their revenue by changing the price of a ticket. Based on market research 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 more person will buy a ticket.

An airline flies a daily flight from City A to City B. Currently they sell each ticket for $400, and on average 400 people take the flight, so their revenue per flight is 400 ickets × $400/ticket = $160,000. They are interested in seeing whether they can increase their revenue by changing the price of a ticket. Based on market research 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 more person will buy a ticket.

Name: 5-What ticket price would maximize the airline's revenue? An airline
Uploaded: 2024-03-20T07:07:26.000Z
Channel: Bartleby
Description: 5-What ticket price would maximize the airline's revenue? An airline flies a daily flight from City A to City B. Currently they sell each ticket for $400, and on average 400 people take the flight, so their revenue per flight is 400tickets x $400/ti

Calculus: Early Transcendentals

8th Edition

ISBN:9781285741550

Author:James Stewart

Publisher:James Stewart

Chapter1: Functions And Models

Section: Chapter Questions

Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...

See similar textbooks

Related questions

Q: 7. Find producer surplus and consumer surplus given demand curve p=60–2x and supply curve p=3x+16…

A: The demand curve is: p=60-2x2 The supply curve is: p=3x+16

Q: How many items should the company sell to maximize profit? (to the nearest thousand items)

A: Here given profit function is. .differentiating it twice with respect to x, we get No for stationary…

Q: What is one of the possible approaches for profit-making organizations to circumventing the problem…

A: Let PMO denote profit-making organizations.

Q: Approaching the month of Ramadan, PT Prima Sehat predicts that there will be an increase in demand…

A: Let’s denote the company PT Prima Sehat as PT.The raw materials for animal feed are suspects and…

Q: A volleyball team plays in a stadium with a capacity of 50,000 spectators. With the ticket price at…

A: The function that maximize the ticket sales revenue is given as follows

Q: . You decide to start selling laser cut coasters. You spend $1500 on a laser cutter. Each coaster…

Q: ation = the 38. Performance Task The Bluebird Bakery sells more alfajores when it lowers its prices,…

Q: 3. Write different case of optimal solution.

A: Answer given below.

Q: Explain the theory behind the supply function

A: Solution The relationship between the quantities supplied and the determinants of supply is called…

Q: The cost of attending your university/college has once again gone up. One of the administrators at…

A: Given:

Q: Discount Tire Center has $19,599 available per month for advertising. Newspaper ads cost $200 each…

Q: Fixed cost is the difference between total cost and total variable cost. True or False

Q: The Equilibrium Price is $19 is wrong

Q: A) What are the shadow prices for each resource? Which is the most “scarce” resource for AB…

A: note : Since you have posted question with multiple sub parts, we will provide the solution only to…

Q: 1.) A retiree has 60 garden plots on which he could plant cabbage and pechay. His friend told him…

A: Since you have posted a multiple question according to guildlines I will solve first question…

Q: Suppose the premium for policy A is reduced to $25. Now how many units should be purchased from…

A: Now the premium for policy A is reduced to $25. For this price we will find no of units purchased.

Q: What are nonlinear cost relationships? Give two examples.

A: Non-linear in general terms means there is no linear relationship between the variables.…

Q: why the cost of external equity is greater than the cost of internal equity?

A: Always the cost of external equity is greater than the internal equity due to the floating costs…

Q: Golf Factory golf course normally has 160 players each day, each paying $50 to play. They want to…

A: Given: The number of players each day is 160 each paying $50 to play. For every $5 increase, there…

Q: r(p) = 600p - 6p^2 what price p maximizes revnue? p= $___

Q: (c) Additional Pulpwood 1 could be bought at RM 250 per ton. What would you recommend to the…

A: To make a recommendation to the company and calculate the increase in optimal profit, we need to…

Q: Discount Tire Center has $13,439 available per month for advertising. Newspaper ads cost $180 each…

A: Given- Discount Tire Center has $13,439 available per month for advertising. Newspaper ads cost $180…

Q: Apple Company creates new plan to decide the quantity of mobile phone to be produced. There are 3…

Q: Z-Salon profits $12 on each manicure and $18 per haircut. A manicure takes 30 minutes and a…

A: Let x and y denote the number of manicures and haircuts. The profit on manicure is $12 and on…

Q: How does a price ceiling or price floor undermine the rationing and allocation function of prices?

A: Price ceilings are the highest prices of goods and services that firms can charge consumers.…

Q: If a company A manufactures t-shirts and sells them to retailers for $9.80 each. It has fixed cost…

A: Company B also manufactures t-shirts and sell them directly to consumers. The demand for this…

Topic Video

Question

5-What ticket price would maximize the airline's revenue?

An airline flies a daily flight from City A to City B. Currently they sell each ticket for $400, and on average 400 people take the flight, so their revenue per flight is 400
tickets x $400/ticket = $160,000. They are interested in seeing whether they can increase their revenue by changing the price of a ticket. Based on market research 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 more person will buy a ticket.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Optimization$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.

Similar questions

The owner of a condominium complex has 45 units all of which will be occupied if the rent charged is $600per month. The owner estimates that for every $20 increase in rent, one of the units will become vacant.The owner sets aside $60 per month from each of the occupied units to establish a repair fund. What rentshould be charged per month in order to maximize the owner’s profit if there are no other expenses? Whatis the owner’s maximum monthly profit? How many units are occupied?
5) A factory owner has 100 employees that produce 6000 computers per day. For each additional employee that the owner highers, the average production per employee decreases by 8 computers. How many employees should the owner have in order to maximize production?
The budget for a project on voting trends includes $2800 for hiring undergraduate students, graduate students, and faculty members to conduct interviews on the day before an election. Each undergraduate student will conduct 25 interviews for $100. Each graduate student will conduct 29 interviews for $150. Each faculty member will conduct 32 interviews for $200. No more than 15 interviewers can be hired. How many of each type of interviewer should be hired in order to maximize the number of interviews? What is the maximum number of interviews? undergraduate students, graduate students, and faculty members should be hired to maximize the number of interviews. The maximum number of interviews is (Type a whole number.)
6. (a) A man has $4.55 in change composed entirely of dimes and quarters. What are the maximum and minimum number of coins that he can have? Is it possible for the number of dimes to equal the number of quarters? (b) The neighborhood theater charges $1.80 for adult admissions and $.75 for children. On a particular evening the total receipts were $90. Assuming that more adults than children were present, how many people attended? (c) A certain number of sixes and nines is added to give a sum of 126; if the number of sixes and nines is interchanged, the new sum is 114. How many of each were there originally?
UB is hosting a charity event and makes a profit of $14 on each faculty in attendance and $6 on each student in attendance. The number of faculty attending must be between 25 and 65, and the number of students should be between 20 and 35. The total number of attendees should not exceed 80. How many faculty should attend to maximize profit?
The budget for a project on voting trends includes $4200 for hiring undergraduate students, graduate students, and faculty members to conduct interviews on the day before an election. Each undergraduate student will conduct 18 interviews for $100. Each graduate student will conduct 24 interviews for $150. Each faculty member will conduct 29 interviews for $200. No more than 22 interviewers can be hired. How many of each type of interviewer should be hired in order to maximize the number of interviews? What is the maximum number of interviews? undergraduate students, graduate students, and faculty members should be hired to maximize the number of interviews.
how do we estimate direct and indirect costs . explain in detail.
Refer to the production possibilities curves for Chairland and Tableland. Chairland can produce 36 chairs per day and no tables, or 18 tables table per day and no chairs. Tableland can produce 40 chairs per day and no tables, or 40 tables per day and no chairs. If the two countries split the difference between the buyer's willingness to pay for tables and the seller's willingness to accept, in terms of the number of chairs for 1 table, the terms of trade will be . (Enter your response rounded to one decimal place.) Country Quantity per day Opportunity cost of chairs Opportuity cost of tables Tableland 40 chairs, 40 tables 1 table 1 chair Chairland 36 chairs, 18 tables 1/2 table 2 chairs
11)This multiple choice question from BUSINESS MATHEMATICS course.just write for me the final answer.