Microeconomics

posted by .

Suppose that flying a 200-seat plane across country costs the airline $100,000. Thus, the average cost of each sear is $500. A plane is about to take off with 10 empty seats. Astandby passenger is waiting at the gate willing to pay $300 for a seat. Should the airline sell it to him? Explain. Should the airline sell him the seat for $50? Explain

  • Microeconomics -

    Of course the airline should sell the standby passenger a seat -- at whatever price the customer is willing to pay. His ticket price is simply additional revenue added on to the revenue the company has already collected from the other passengers. The additional passenger doesn't add to the airline's cost of flying this plane.

  • Microeconomics -

    Thanks Ms. Sue

  • Microeconomics -

    You're welcome.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. career question, please help

    Fill in the blank with the correct answer. You are a production manager for a pill manufacturer. You must get the materials for a production run. The order calls for 10,000 pills. The materials to go inside the 10,000 pills cost a …
  2. career course

    how would this quesFill in the blank with the correct answer. You are a production manager for a pill manufacturer. You must get the materials for a production run. The order calls for 10,000 pills. The materials to go inside the 10,000 …
  3. English

    I forgot to include the following sentences. 1)1)About half an hour before take-off you go to your gate number, where you wait before you get on the plane. Finally, you board the plane and find your seat. 2)If you have a hand luggage, …
  4. Physics

    A jet plane has a takeoff speed of Vto=125km/h (34.72 m/s) and it's engines can power it to accelerate with an average acceleration of 5.6 m/s^2. A.) what length of runway will it need to take off safely?
  5. math

    An airline knows that, on average, the probability that a passenger will not show up for a flight is 6%. If an airplane is fully booked and holds 300 passengers, how many seats are expected to be empty?
  6. Math

    An airline believes that the probability of a passenger being a no-show on a morning flight is 12%. If the airline overbooks a 300 seat morning flight by selling 350 tickets how many empty seats should the airline expect to have on …
  7. statics

    A1. Miss Dombo, a Ticketing Manager with an Airline ying international routes, has realised that not all passengers show up for their reserved seat. It is clear to her that each passenger's behaviour is independent of the other. Having …
  8. STATISTICS

    Miss Dombo, a Ticketing Manager with an Airline flying international routes, has realised that not all passengers show up for their reserved seat. It is clear to her that each passenger’s behaviour is independent of the other. Having …
  9. Statistics

    Suppose that on average 10% of the people with an airline-ticket doesn't show up at the flight.For a certain flight, the plane has 100 seats and 110 tickets are sold. What is the probability that everyone who shows up will have a seat?
  10. probability

    There are 100 people in line to board a plane with 100 seats. The first person has lost their boarding pass, so they take a random seat. Everyone that follows takes their assigned seat if it's available, but otherwise takes a random …

More Similar Questions