× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
p
4
h
4
c
4
d
3
3
c
3
t
3
u
3
A
3
B
3
j
3
s
3
New Topic  
Satsume Satsume
wrote...
Posts: 761
Rep: 0 0
6 years ago
If there are open first-class seats available on a particular flight, some airlines allow customers with coach (discount) tickets to upgrade to first-class tickets during the electronic check-in process.  Suppose the regular price of a first-class ticket is $800, the total price of the upgrade ticket (original price plus the upgrade) is $400, the marginal cost of serving both types of customers (full-fare and upgrade first-class flyers) is $100, and the airline maximizes profits.  Which of the following statements is true?
A) MR for the full-fare customers must be higher than the MR from upgrade customers.
B) MR for the full-fare customers may be higher or lower than the MR from upgrades.
C) MR = MC for the full-fare customers, but the airline is willing to collect any positive amount from the upgrade customers.
D) MR must be the same for both full-fare and upgrade customers.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
Read 57 times
1 Reply

Related Topics

Replies
wrote...
6 years ago
D
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1111 People Browsing
Related Images
  
 181
  
 386
  
 300
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 820