The company World Airline System is composed of the routes X and Y, and each route requires 10 aircrafts. These routes can be serviced by three types of aircrafts A, B, and C. There are (five) 5 type A aircraft available, 10 type B, and 10 type C. These aircrafts are identical except for their operating costs, which are as follows:

Annual operating cost ($ millions)

Aircraft type	Route X	Route Y
A	1.5	1.5
B	2.5	2.0
C	4.5	3.5

The aircrafts have a useful life of five years and a salvage value of $1 million.

The aircrafts owners do not operate the aircrafts themselves but rent them to the operators. Owners act competitively to maximize their rental income, and operators attempt to minimize their operating costs. Airfares are also competitively determined. Assume the cost of capital is 10%.

Note: (Please explain your answer. The question is answered by another Chegg user which is not very clear)