Question
Please help me solve questions 4 through 8. I am having trouble finding the Marginal Cost. Delta Airlines has frequent (every hour or every two
Please help me solve questions 4 through 8. I am having trouble finding the Marginal Cost.
Delta Airlines has frequent (every hour or every two hours) flights between key metropolises in the Northeast - they call these flights the "Delta Shuttle" service.At the time of writing this problem set, the Shuttle service is offered between New York and Boston (LGA-BOS), DC (LGA-DCA), and Chicago (LGA-ORD).
In the late 90s, Delta offered special student pricing on the Boston route, perhaps due to the fact that Boston is a college city (Boston University, Boston College, MIT, Harvard, etc.), but then discontinued the program in early 2000.Now Delta is re-considering decisions on their shuttle route.The MD-88 plane has 148 seats and the Embraer 175 has 76 seats.Please see the accompanying Excel with the pricing data.
Delta Airline Costs
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