If exactly 206 people sign up for a charter flight, Leisure World Travel Agency charges $304/person. However, if more than 206 people sign up for the flight (assume this is the case), then each fare is reduced by $1 for each additional person. Let x denote the number of passengers above 206. Find the revenue function R(x). R(x) = Determine how many passengers will result in a maximum revenue for the travel agency. passengers What is the maximum revenue? 24 What would be the fare per passenger in this case? dollars per passenger

If exactly 206 people sign up for a charter flight, Leisure World Travel Agency charges $304/person. However, if more than 206 people sign up for the flight (assume this is the case), then each fare is reduced by $1 for each additional person. Let x denote the number of passengers above 206. Find the revenue function R(x). R(x) = Determine how many passengers will result in a maximum revenue for the travel agency. passengers What is the maximum revenue? 24 What would be the fare per passenger in this case? dollars per passenger

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A travel agency will plan a group tour for groups of size 35 or larger. If the group contains exactly 35 people, the cost is $280 per person. If each person's cost is reduced by $10 for each additional person above the 35, then the revenue is given by the equation shown below, where x is the number of additional people above 35. R(x) = (35 + x)(280 − 10x) Find the marginal revenue if the group contains 40 people.
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