Question: Now suppose the airline in Problem S2 can vary the number of daily departures. a. Use marginal analysis to find the airline's profit-maximizing number of

Now suppose the airline in Problem S2 can vary the number of daily departures.
a. Use marginal analysis to find the airline's profit-maximizing number of flights, and how many passengers of each type it should it carry.
MRB = MRE = MC per seat. Be sure to translate the $20,000 marginal cost per flight into the relevant MC per seat.)
b. Confirm your algebraic answer by using the spreadsheet you created in Problem S2.
c. Use your spreadsheet's optimizer to confirm the optimal solution?

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a The MC per seat is 20000 per plane divided by 200 seats per plane or 100 Setting MR B MR T 100 we ... View full answer

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