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all information is presented. capacity of flight does not matter, as stated in the problem. Think of distance in terms of a clock. An airline
all information is presented. capacity of flight does not matter, as stated in the problem. Think of distance in terms of a clock. An airline is trying to decide how many flights to offer out of a small airport to a popular destination between 6 am and 6 pm. It is the only airline serving this particular airport. There are 500 passengers per day. Each flight costs $2000 to operate regardless of how many passengers are on board. In addition, each passenger costs the airline $400. Passengers value their waiting time at $64 per hour. How many flights per day should the airline offer? Show your work and explain. b. What is the total cost of a flight to the average passenger, assuming the airline offers the optimal number of flights and prices at average total cost? a
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