For a bus with a capacity of 30 seats, the full fare is $450 and the discounted fare is $150. On average, the bus expects 20 full-fare customers, but this number could be as low as 10 or as high as 30. What is the optimal discount-fare booking limit in this scenario? A) 1

For a bus with a capacity of 30 seats, the full fare is $450 and the discounted fare is $150. On average, the bus expects 20 full-fare customers, but this number could be as low as 10 or as high as 30. What is the optimal discount-fare booking limit in this scenario? A) 1

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter14A: The Practice Of Revenue Management

Section: Chapter Questions

Problem 3E

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