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Category > Calculus Posted 10 Jul 2017 My Price 4.00

The regular air fare between Boston and San Francisco is $500.

The regular air fare between Boston and San Francisco is $500.

An airline flying 747s

with a capacity of 380 on this route observes that they fly with an average of 300

passengers.

Market research tells the airlines' managers that each $20 fare reduction

would attract, on average, 20 more passengers for each flight.

How should they set the

fare to maximize their income?

Why?

Answers

(15)
Status NEW Posted 10 Jul 2017 02:07 AM My Price 4.00

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file 1499654016-Solutions file.docx preview (51 words )
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