Question: Read the following and then thoughtfully discuss the questions.
Often airline frequent flier programs upgrade high volume passengers one, three, or five days in advance. Discuss:
• What are the differential costs of this practice?
• What are the opportunity costs?
• What are the opportunity costs of not doing this?
• Would it be wise to sell a seat to a passenger walking up to the gate at the last minute a ticket based on the variable cost? Why or why not?