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Unformatted text preview: demand for tickets the rest of the year is P = 2000 - 5Q. The marginal cost of an additional passenger, regardless of the season, is $200. a. Graph the demand curve during the summer and for the rest of the year. b. Graph the marginal cost curve for both markets. c. Derive and graph the marginal revenue curve during the summer and for the rest of the year. d. What price should the airline charge during the summer and for the rest of the year to maximize profits? How many tickets will be sold?...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08