If there are open first-class seats available on a particular flight, some airlines allow customers with coach (discount) tickets to upgrade to first-class tickets during the electronic check-in process
Suppose the regular price of a first-class ticket is $800, the total price of the upgrade ticket (original price plus the upgrade) is $400, the marginal cost of serving both types of customers (full-fare and upgrade first-class flyers) is $100, and the airline maximizes profits. Which of the following statements is true? A) MR for the full-fare customers must be higher than the MR from upgrade customers.
B) MR for the full-fare customers may be higher or lower than the MR from upgrades.
C) MR = MC for the full-fare customers, but the airline is willing to collect any positive amount from the upgrade customers.
D) MR must be the same for both full-fare and upgrade customers.
D
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The labour force is
A) the total number of people employed. B) the total number of people in the working-age population who are either employed or unemployed. C) the total number of people in the working-age population who are employed. D) the total number of people aged 15 years and over. E) none of the above.
The fact that a society's production possibilities curve is bowed out from the origin of a graph demonstrates the law of:
A) increasing opportunity cost. B) decreasing opportunity cost. C) constant opportunity cost. D) convex opportunity cost.
Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, according to the profit maximization rule, at the profit-maximizing level of output, total cost is
A. $1,200. B. $950. C. $900. D. $650.
A free rider is someone who
A. hops on the bus without paying the correct bus fare. B. buys a ticket for a movie. C. creates a negative externality. D. enjoys the trees I have planted and does not compensate me for them.