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Suppose that the marginal cost of a one-way airfare is $80. If the airline practices perfect (rst- degree) price discrimination, how many customers will purchase
Suppose that the marginal cost of a one-way airfare is $80. If the airline practices perfect (rst- degree) price discrimination, how many customers will purchase one-way airfare? Customer Maximum willingness to pay (one-way airfare) Customer #1 $170 Customer #2 $150 Customer #3 $130 Customer #4 $110 Customer #5 590 Customer #6 $70 Customer #7 $50 O 1 customer 0 2 customers O 3 customers Q 4 customers 0 5 customers 0 6 customers O 7 customers
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