Explain the effect on capacity reallocations of advance sales data indicating mean demand of 55 rather than
Question:
Equation:
µseats + ZαÏseats = 60 + 0.148 à 20 = 63seats
Transcribed Image Text:
ALLOCATING AIRLINE CAPACITY WITH DIFFERENTIAL FARES FOR LEISURE AND BUSINESS BUSINESS CLASS LEISURE CLASS EXPECTED SEAT DEMAND EXPECTED MARGINAL REVENUE EXPECTED SEAT DEMAND EXPECTED MARGINAL REVENUE TOTAI SEATS MARGINAL COST FARE $1,084 1,032 974 907 835 613 FARE $87 87 87 87 87 87 $1,084 550 10 10 331 319 311 456 25 10 240 230 210 194 180 162 150 140 133 130 128 122 115 110 100 100 100 112 112 112 120 125 130 140 155 170 190 381 60 231 331 180 100 60 70 80 90 100 107 110 120 130 140 214 295 150 130 198 192 188 186 181 176 173 268 133 160 261 130 170 122 190 235 110 220
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m Seats 55 s seats 20 m Seats z s seats 55 0148...View the full answer
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Related Book For
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
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