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Managerial Economics · End Term · 10 May 2026 · January 2026 term · Set 1-2

Question 9: Now, suppose BA realizes that the fixed costs per flight …

Question 9

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Bharat Airlines (BA) flies only one route: Delhi-Chennai. The demand for each flight is Q=600-2P. BA’s total cost of running each flight includes a fixed cost of 20000 and a variable cost of 90 per passenger.
Based on the above data, answer the given subquestions.

Now, suppose BA realizes that the fixed costs per flight are in fact 25000 instead of 20000. It also finds out that two different types of passengers fly to Chennai. Type A consists of business people with a demand of QA=520-0.8P and type B consists of students with a demand of QB=240-0.4P. BA decides to charge these two types different prices.
The price that BA charge the students is PB= ________

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Correct answer: 345

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Question 9 of 36 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 10 May 2026, in the January 2026 term (Managerial Economics 06 May 26). It carries 1 mark.

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