For a given flight with a capacity of 85 seats, price and demand are as follows (assume

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For a given flight with a capacity of 85 seats, price and demand are as follows (assume a marginal cost is $0):

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a. What is the maximum profit that can be achieved with only a single price?

b. A fence can be established so that two prices can be charged.
How does your answer to part (a) change?

c. Repeat part (b) using three prices.

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Service Systems Engineering And Management

ISBN: 978-0367781323

1st Edition

Authors: A. Ravi Ravindran ,Paul M. Griffin ,Vittaldas V. Prabhu

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Question Posted: Feb 27, 2024 03:11 AM

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For a given flight with a capacity of 85 seats, price and demand are as follows (assume

Question:

Price Demand $100 80 $130 70 $150 $200 65 50 $240 37 $300 29

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Service Systems Engineering And Management

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