The cost of flying a passenger


The cost of flying a passenger plane from point A to point B is $50,000. The airline flies this route four times per day at 7am, 10am, 1pm, and 4pm. The first and last flights are filled to capacity with 240 people. The second and third flights are only half full. Find the average cost per passenger for each flight. Suppose the airline hires you as a marketing consultant and wants to know which type of customer it should try to attract, the off-peak customer (the middle two flights) or the rush-hour customer (the first and last flights). What advice would you offer?

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Microeconomics: The cost of flying a passenger
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