Perfect Flights, a commercial airline, has a monopoly on the route it flies but decides to charge each passenger a price exactly equal to what the passenger is willing to pay. At $500 no one is willing to fly. At a price of $300 there are 100 passengers willing to fly, and at a price of $100 there are 200 customers willing to fly. The marginal cost of a passenger on its flight is constant for any number of passengers at $100. Calculate profits for Perfect Flights.
a. $20,000
b. $25,000
c. $30,000
d. $40,000
d. $40,000
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