An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc. How much profit will the airline earn if it engages in price discrimination

Answers

Answer 1

Answer:

The answer is "$55000".

Explanation:

When discrimination against prices is practicable, $600 would be charged to travelers and $300 to tourists. Now,

Total revenue(TR) [tex]=P \times Q[/tex]

                               [tex]=600\times 100+300 \times 50 \\\\ =600\times 100+15,000 \\\\ =60,000+15,000 \\\\=\$75,000[/tex]

Total Cost(TC)[tex]=\$20000[/tex]

Profit[tex]=TR-TC[/tex]

           [tex]=\$75000-\$20000 \\\\ =\$55,000[/tex]


Related Questions

30 points please help!
Olive's organic Baby food believes their reputation is being put down by a competitor because of their untruthful advertising. Which of the following types of business tort is this?
a. fra ud
b. crim inal
c. defam ation

Answers

Answer:

i believe is fraud

Explanation:

if you find it helpful pls give me the points

by wr
workbook:
1.1 Assets minus Owner's Equity
A. Current liabilities
B. Capital
C. Liabilities
D. Current assets​

Answers

Answer:

C. Liabilities

Explanation:

Financial accounting can be defined as the field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time.

Owner's equity is simply what a person owns outrightly and it is also referred to as net worth. It ​can be defined as the value of financial and non-financial assets owned by a person minus the total outstanding liabilities or debts of that person. Simply stated, owner's equity refers to the difference between the amount a person own (asset) and the amount owed (liability).

Mathematically, net worth is given by the formula;

[tex] Owner's \; equity = Total \; assets - Total \; liabilities[/tex]

Making liabilities the subject of formula, we have;

[tex] Total \; liabilities = Total \; assets - Owner's \; equity [/tex]

In Financial accounting, liability can be defined as the amount of money being owed by an individual or organization to another.

Simply stated, liability is a debt being owed and as such it usually has "payable" in its account title on the balance sheet.

Generally, liabilities are recorded on the right side of the balance sheet and it comprises of financial informations such as warranties, bonds, loans, deferred revenues, mortgages, account payable etc.

Hence, Assets minus Owner's Equity is equal to Liabilities.


What is the difference between specialization and cross-training?
A. Specialization is for employees at the top management level of
the company while cross-training is for employees at the entry
level.
B. Specialization is for employees who have an advanced degree
while cross-training is for those who do not have an advanced
degree.
C. Specialization is for employees who love what they do while cross-
training is for employees who don't love any one particular area of
their work.
D. Specialization leads employees to focus on a single skill or task
while cross-training deals with training employees in multiple skills
or tasks.

Answers

Answer:

D. Specialization leads employees to focus on a single skill or task

while cross-training deals with training employees in multiple skills

or tasks.

Explanation:

Job specialization can be defined as a strategic process which typically involves the ability of employees working in an organization to develop specific skills, knowledge, great expertise or professionalism and experience to perform their duties, tasks or job functions effectively and efficiently.

In order to gain the requisite skills, expertise and knowledge for job specialization, it is very important for the employees to have undergone an extensive training and a good number of years in work experience.

The primary purpose of job specialization is to increase efficiency and productivity because the employees are able to specialize in the use of specific tools (equipments) to accomplish their tasks, as well as limit the level of error or mistakes in the production process.

On the other hand, cross-training can be defined as a learning process which typically involves teaching an individual or group of people multiple skills that are relevant to their job position or roles in an organization.

Hence, the difference between specialization and cross-training is that, specialization leads employees to focus on a single skill or task while cross-training deals with training employees in multiple skills or tasks.

Which aspect of the organization should Albert have been aware of before joining it?
Albert has recently joined a business organization. After a few weeks, he has realized that he is not happy with the organization's values,
management style, and policies. He is thus finding it difficult to perform daily tasks. He wishes he had found some information about the
organization's
before joining it

Answers

Answer:

well you have to think before taking action in something

2. The owner of a franchise benefits from brand name recognition, access to professional
and nationwide advertising.

Answers

Answer:

True

Explanation:

It is TRUE that the owner of a franchise benefits from brand name recognition, access to professional and nationwide advertising.

This is because the owner of a franchise has various advantages. The advantages include enhanced reputation which covers all the places there is a franchise.

Then there is an increase in management techniques and work practices, including access to national advertising to cover many places and continuous support.

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