The world airline system is composed of the routes $x$ and $Y,$ each of which requires $10$ aircraft. These routes

can be serviced by three types of aircraft$-$A$,$ B$,$ and C$.$ There are $5$ type A aircraft available, $10$ type B$,$ and $10$

type $C.$ These aircraft are identical except for their operating costs, which are as follows:

The aircraft have a useful life of five years and a salvage value of $$1\mathrm{.}3$ million.

The aircraft owners do not operate the aircraft 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 $9\%.$

a$-1.$ Which aircraft would be used on which route?

a$-2.$ How much would each aircraft be worth?

b$-1.$ Assume the number of type A aircraft increased to $10.$ Which aircraft would be used on which route?

b$-2.$ How much would each aircraft be worth?

c$-1.$ Assume the number of type A aircraft increased to $15.$ Which aircraft would be used on which route?

c$-2.$ How much would each aircraft be worth?

d$-1.$ Assume the number of type A aircraft increased to $20.$ Which aircraft would be used on which route?

d$-2.$ How much would each aircraft be worth?

Complete this question by entering your answers in the tabs below.

Req B$2$

Req C$1$

Req C$2$

Req D$1$

How much would each aircraft be worth? $($Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place.$)$