(Answered) Airline pricingnbspconsider an airline that initially has a

Management Studies

Airline Pricing. Consider an airline that initially has a single price of ?$300 for all consumers. At this? price, it has 100 business travelers and 60 tourists. The? airline's marginal cost is ?$150 The slope of the business demand curve is minus-?$3 per? traveler, and the slope of the tourist demand curve is minus-?$2 per traveler. Does the? single-price policy maximize the? airline's profit?

The airline should the price it charges business travelers and it should the price it charges tourists.

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