In Example 14.2-1 suppose that the overhead cost associated with each ticket is $100. Reproduce the graph in Figure 14.1 to provide the net revenue. Does the optimum price per ticket change?

Example 14.2-1

The Q-P demand curve for a flight between two destinations is estimated as Q = 250 − 25P.
The units of price and revenue are in $100s. What should be the optimum capacity of the plane
serving this route?