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A regional airline sells 200 tickets to New York City for an average price of $ 150 one way Half of the people on the flight will purchase a meal for $5 The airline’s

A regional airline sells 200 tickets to New York City for an average price of $ 150 one way. Half of the people on the flight will purchase a meal for $5. The airline’s employee costs per flight include $500 each for the pilot and copilot, and $200 for each flight attendant. The law requires airlines to have at least one pilot, copilot, and flight attendant for each flight. Fuel for the flight is expected to cost $10000, and the cost of catering food is $1 for each item purchased. 1st attempt Part 1 (4 points) See Hint The airline earns blank.png $ in revenue from tickets and blank.png $ from in-flight purchases. If one flight attendant is staffed for the flight, the airline pays blank.png $ in fixed costs. If the airline has three flight attendants for the flight, the firm earns blank.png $ profit. Part 2 (4 points) See Hint What happens to profit in each of the following scenarios, given the information in Part 1 above? Options: Increase or decrease or stay the same Scenario Change in Profit 1. An unexpected fuel shortage results in an increase in the price of fuel for the foreseeable future. blank.png 2. A large conference is announced in New York, which results in an increase in demand for seats on flights to New York. blank.png 3. A competing airline opens a route, which increases the supply of flights to New York City. blank.png 4. The pilots' union negotiates higher wages for pilots and copilots. blank.png

Apr 21 2020 View more View Less

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