Why does it makes sense for an airline to offer discounted fares to students, senior citizens, or some other group, when those fares are lower than the average cost per passenger? Would it make sense to offer deeply discounted fares, such as a $59 ticket from Los Angeles to San Francisco, one hour before departure? Why?

Answer rating: 100% (QA)

Price discrimination arises when a firm sells different units of the same good at different prices T... View the full answer