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ID: 1095175 • Letter: M
Question
Mnd rap x W WSUPpe x W Office of t XCDouglas F x C Consider x C Chegg St x MWDepartme x M WDegree Re x Mwwayne St C Basic Eco webpages If a 2 cent x O Micro Unit x MCHomework xA Ap C Courses aplia.com/af servlet/quiz?quiz action takeQuiz&quiz; probGuid QNAPCOA80 00000023 000050000& 9087-0007 Consider an airline's decision about whether or not to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Number of Total Cost Passengers TC 40,000 60,000 65,000 20 68,000 30 40 70,000 71,000 50 72,500 60 73,500 70 74,000 80 74,300 90 74,500 100 Given the information presented in the previous table, the fixed cost to operate this flight is At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Use the following demand schedule to complete the questions that follow: Quantity Demanded Price (Dollars per ticket) Tickets 1,000 700 30 400 90 200 100 Assume that the price of a flight is fixed for the duration of ticket sales. Complete the following table by computing total revenue, total cost, variable cost, and economic profit for each of the prices listed. (Hint: Be sure to enter a minus sign before the number if the numeric value of an entry is negative.) Total Revenue Total cost Variable cost Price Profit (Dollars per ticket) TR P x Q) (TC) (VC) TR TC) 1,000 700 400 200 Start 9:05 PMExplanation / Answer
fixed cost = 40000
price...........total revvenue...........total cost..................variable cost.................profit
1000....................0...................................40000..........................0.................................-40000
700.....................21000.........................68000...........................28000.........................-47000
400....................36000..........................74300.........................34300..............................-38300
200.....................20000........................74500...........................34500................................-54500