Question: Calculate the optimal markup on cost for each service, based on the following estimates of point price elasticity of demand: Passenger Cost Elasticity First class

Calculate the optimal markup on cost for each service, based on the following estimates of point price elasticity of demand:

Passenger Cost Elasticity

First class 450 -1.25

Business Traveler 325 -1.1

Leisure 150 -2.8

Holiday 150 -2.3

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