At each ticket price, a different number of consumers will be willing to purchas

Question

At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Use the following demand schedule to complete the following questions;

Price(Dollars per ticket)..........Quantity Demanded(Tickets)

1000............................................0

700..............................................30

400..............................................90

200..............................................100

Assume the price of a flight is fixed for the duration of ticket sales. Complete the following table by computing total revenue, total cost, variable cost, and economic profit for each of the price listed. (Hint: Be sure to enter a minus sign more the number if the numeric value of an entry is negative).

Price(Given), Total Revenue(I think), Total Cost, Variable Cost, Profit

1000..................0.....................................0

700....................21000

400....................36000

200....................20000

Explanation / Answer

Are you missing information on how the quantity of production impacts costs for the airline? Because otherwise the total cost and varaible cost will just be zero for all of them and profit = revenue. You have your revenue calculated correctly.

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