A small commuter airline operates a 6-passenger airplane, Operation Management

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A small commuter airline operates a 6-passenger airplane

A small commuter airline operates a 6-passenger airplane. The airline management has applied an overbooking analysis to determine how many reservations they should take for their morning flight. The result of the analysis is shown on the table below. In conducting this analysis, what did they assume was the cost of flying with an empty seat?

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