Question
An airport sets profit-maximizing landing fees for airlines. The period 8am to 8pm is the peak period and the period 8pm to 8am is the
An airport sets profit-maximizing landing fees for airlines. The period 8am to 8pm is the peak period and the period 8pm to 8am is the non-peak period. The inverse demand function for the peak period is p = 10 - 0.1Q. The inverse demand function for the non-peak period is p = 5 - 0.1Q. The marginal cost per landing for the airport is 1. The maximum number of landings the airport can handle (capacity) is 30.
The profit-maximizing price for a landing slot in the non-peak period is ___.
The profit-maximizing price for a landing spot in the peak period is ___.
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