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Managerial Economics · End Term · 1 Sept 2024 · May 2024 term

Question 32: Now, suppose BA realizes that the fixed costs per flight…

Question 32

+2 marksNumerical answer

Based on the above data, answer the given subquestions.

Now, suppose BA realizes that the fixed costs per flight are in fact 41000 instead of 30000. It also finds out that two different types of passengers fly to Chennai. Type A consists of business people with a demand of QA = 260 - 0.4P and type B consists of students with a demand of QB= 240 - 0.6P. BA decides to charge these two types different prices.

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Correct answer: 375 (accepted within ±4)

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Question 32 of 36 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 1 Sept 2024, in the May 2024 term (IIT M DEGREE AN EXAM QDB3 01 Sep 2024). It carries 2 marks.

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