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For April 2021, the actual cost per ASM (available seat mile) for Southwest Airlines was 12.39. Using this as our best estimate of marginal cost,
- For April 2021, the actual cost per ASM (available seat mile) for Southwest Airlines was 12.39. Using this as our best estimate of marginal cost, and assuming the price elasticity of demand is -3.5, find the profit maximizing air fare for Southwest Airline.
A.$15.55.
B.$21.35.
C.$32.45.
D.$45.75.
E.$55.25.
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Introduction to Behavioral Economics
Authors: David R. Just
1st edition
0470596228, 978-0470596227
