1.What is MC? How will you find it? Why do you think this?

Analysis

2.What is the maximum profit Delta can earn by flying the Embraer 175?

a.Should they offer different student v business passenger pricing?

b.What pricing should they sell seats at? What quantity will they sell, what will be their revenue, and what will be their profit? If you answered yes in (5a), give price and quantity for each the youth and business segment.

3.What is the maximum profit Delta can earn by flying the MD-88?

a.Should they offer different student v business passenger pricing?

b.What pricing should they sell seats at? What quantity will they sell, what will be their revenue, and what will be their profit? If you answered yes in (5a), give price and quantity for each the youth and business segment.

4.Which aircraft should Delta use? Why? Please explain and support your answer.

5.Say Delta does decide to use group-based pricing to differentiate between the business and youth segments, what are potential challenges to that strategy or problems to implementing it you could foresee? How could you mitigate those?