Question: Problem 7.6. The regular air fare between Miami and Chicago is $450. An airline using planes with a capacity of 300 passengers on this route

Problem 7.6. The regular air fare between Miami and Chicago is $450. An airline using planes with a capacity of 300 passengers on this route observes that they fly with an average of 175 passengers. Market research tells the airlines' managers that each $10 fare reduction would attract, on average, 5 more passengers for each flight. How should they set the fare to maximize their revenue?

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