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CIT AUT19 . Microeconomics for Managers . Autumn 2019 David P: Myatt . London Reainmos School Group Homework, Part 1 of 1. Output Cbalen and

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CIT AUT19 . Microeconomics for Managers . Autumn 2019 David P: Myatt . London Reainmos School Group Homework, Part 1 of 1. Output Cbalen and Pricing with Market Power Den for submission by Spam on Thursday 10 October 219. 10's of care credit The scenario. Tour airline flight plans to branch a weekly flight on a new rocks, where you will be the crique operator. For your initial entry into this market you are maincied loot bring ather an all-armory or al-harinews aircraft. Your bank is chosen the optimal aircraft sins and ticket price for theem alternative sing n-class configurations. (Park 2 will ask you to cheese the configuration and pricing for a mixed-class aircraft.) Costs. An aircraft costs $1000 par priam mutre of reading spoon, per weekly flight. Thes cost already accounts for the space bet to sisbe, restroom, and as an.) An non- any out require l square metres, whereis a beatnos maat te three times larger and as require 1.4 square metres! You are live in chosen any sins of aircraft. Demand. The potential market kar te MN passengers por weekly flight. Each bayer how a valuation ['s lingmee be pay ] for an economy cut, and a thister) valuation for a box meme-dan prod. Faced with a choice for part 2 of this homework) between chaoswal travel, a bayer picks the option that offers the largest pap between the heyer's valuation and the price However, for now a buyer has scores only to a single-due aircraft. Data. You happin (for this first part of this haswork) with an inmenplate picture of demand. A researcher has randomly sampled El pasogore (from the popelation of Hull and booand their valuations far economy class and boxinnes chur mania They are TIE 614 1061 Tasks. You must decide the number of male and the ticket price for the alternation all- memory and all-business aircraft. I aloo ack you be predict your profit for them came. Leng the ball out of MI valuations I will compete your palox and profitability Note that it in prosible that you are left with anadd seats if you price bas higher there in pooras demand til you price boo look If this happens, then I will also compote for you the adjusted prices that would exactly sell out your chown aircraft can

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