Consider a profit-maximizing airline that has a local monopoly in air travel.It expects to face a market demand function given by Q=(900-P)/3, where P is the price of an airfare ticket per passenger and Q is the number of passengers.The airplane serving this particular route has a capacity of 135 seats, and the marginal cost of carrying a passenger is MC=90 up to that capacity. With these expectations in mind the airline goes ahead and charges its passengers the price that maximizes its profits.However, closer to the date of the flight it realizes that demand is much less than anticipated, only Q=(900-P)/9 .Knowing that its plane will be flying with empty seats, the monopolist decides to offer a seat sale.

12What seat-sale price should the airline charge per passenger?

A.$90.45

B.$250.75

C.$175.10

D.$435.65

E.$292.50