Given that,
Profit functions are as follows:
Here, we consider
At this point,
= 310 - 200
= 110
= 230 - 160
= 70
So, the total profit at this point:
= 110 + 70
= 180
Now, suppose that Midsouth sell 20 more tickets to business travelers while 20 less tickets to tourist travelers.
Therefore,
At this point,
= 310 - 240
= 70
= 230 - 120
= 110
So, the total profit at this point:
= 70 + 110
= 180
Now, again suppose that Midsouth sell 40 more tickets to business travelers while 40 less tickets to tourist travelers.
Therefore,
At this point,
= 310 - 280
= 30
= 230 - 80
= 150
So, the total profit at this point:
= 30 + 150
= 180
Hence, by comparing the profit function,
we conclude that the total profit remains the same if the midsouth sell more tickets to the business travelers and fewer to the tourist travelers.
Therefore, the statement is False.
MTBd=310-2QBd Mata=230 – 2Qtd Consider QBd=100, Q12=80. True or false? Midsouth should sell more tickets to...
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