1.Assume that airlines have constant returns to scale.In the long run, the average total cost for any quantity of tickets sold is $100/ticket.The demand schedule is as follows: Customers 1-100 willing to pay up to $200, customers 101-200 willing to pay up to $180,customers 201-300 willing to pay up to $160,customers 301-400 willing to pay up to $140, customers 401-500 willing to pay up to $120 and customers 501-600 willing to pay up to $99.

a.What is the efficient number of tickets to sell?What is total surplus in the efficient outcome?

b.What is the value of total surplus if the price is $110?What is producer surplus for a price of $110?What is consumersurplus for a price of $110?