Purchase Solution

Maximize Profit in Airline Tickets

Not what you're looking for?

Ask Custom Question

Let q = demand for seats on a 500 seat airplane and p = price charged per ticket. Suppose that q = 600 - 3p and let's assume that the unit cost of flying a passenger is $50.00. To maximize profit from the flight, the airline should charge how much per ticket?

a, $100
b, $125
c, $150
d, $175

Purchase this Solution
Solution Summary

This solution shows how to calculate the ideal cost that an airline company should share for a particular ticket so as to maximize profits.

Purchase this Solution
Free BrainMass Quizzes
Multiplying Complex Numbers

This is a short quiz to check your understanding of multiplication of complex numbers in rectangular form.

Probability Quiz

Some questions on probability

Know Your Linear Equations

Each question is a choice-summary multiple choice question that will present you with a linear equation and then make 4 statements about that equation. You must determine which of the 4 statements are true (if any) in regards to the equation.

Solving quadratic inequalities

This quiz test you on how well you are familiar with solving quadratic inequalities.

Geometry - Real Life Application Problems

Understanding of how geometry applies to in real-world contexts

View More Free Quizzes
Related BrainMass Solutions

  • Price vs. Capacity Problem

    b-What fares should the airline charge and how many passengers will buy tickets of each type?

  • Managerial accounting

    The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,000 in advertising costs.

  • Maximizing the Revenue for an Airline Company

     The objective function is Maximize z = 120x + 80y Let the floor area for each II class seat be 1 then that for each I class seat will be 1.2. For x I class tickets and for y II class tickets, the total area will be 1.2x + y.

  • Profit Maximization for American Airlines

    422844 Revenue and Profit for an Airline American Airlines leases a 300-seat carrier to fly its daily Dallas-Denver route.

  • Cinema Theater 3rd-Degree Price Discrimination

    What happens to profit when the theater does not engage in third degree price discrimination? How much does it rise or fall?

  • Price Elasticity of Supply and Demand in the Airline Industry

    So, you can use the 9/11 attacks as the event which caused a change in the price elasticity of demand for the airline industry. Price elasticity of supply and demand in the airline industry is discussed in this solution.

  • Marginal and Nash

    Show that airline A's profit can be expressed as PROFITa = 450[a/(a+b+c)] - 20a . b. Using this formula, fill in the profits in Airline A's Payoff Table given in the attached spreadsheet.

  • Law of demand and supply

    Does the observed change in the purchase and price of airline tickets violate the law of demand? why or why not?

  • Oligopoly and monoplistic competition

    (a) If the airline company has to charge a single price to all passengers, what are the profitmaximizing price, the number of tickets sold to each type of travelers, and the total profit for the airline company?

View More Related Solutions