Question: 4. Gulliver's Cruises is the only line operating cruises between the islands of Lilliput and Blefuscu, in the South Indian Ocean. Twenty percent of Gulliver's


4. Gulliver's Cruises is the only line operating cruises between the islands of Lilliput and Blefuscu, in the South Indian Ocean. Twenty percent of Gulliver's potential customers are high-end passengers, who really value goo service and are willing to pay a substantial premium for i The other 80 percent are regular passengers. The cruise li can offer two types of cabin to its passengers: first-class economy. The table below describes the willingness to pa for each category of cabin by each type of passenger. The table also presents the marginal costs of each type of cab for the cruise line. Throughout this question, ignore any of capacity constraints faced by Gulliver's that is, assume that Gulliver's can offer as many cabins of each category wants. Also, for simplicity, assume that all cabins are individual, so (i) each passenger buys at most one cabin, (ii) two or more passengers cannot divide the same cabin. figures are in dollars
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