An airline's flight is about to take off.It has a few empty seats left aboard.If it lowers its prices,it can fill the remaining seats and fly at full capacity.What should be done?
A)Sell the additional standby seats at a discount since the marginal costs of the additional passenger are almost zero and fly at full capacity
B)Sell the additional standby seats without a discount
C)Don't offer the additional seats for any price
D)none of the above

Question

​An airline's flight is about to take off.It has a few empty seats left aboard.If it lowers its prices,it can fill the remaining seats and fly at full capacity.What should be done?
A)​Sell the additional standby seats at a discount since the marginal costs of the additional passenger are almost zero and fly at full capacity
B)Sell the additional standby seats without a discount
C)Don't offer the additional seats for any price
D)​none of the above

Quizplus · Accepted Answer

Selling the additional standby seats at a discount is the best option as it allows the airline to fill the remaining seats and generate some revenue, which is better than not selling them at all. As the marginal costs of the additional passenger are low, it is feasible to offer them at a discounted rate. This will also help the airline maintain its reputation and customer relations by giving them the opportunity to travel at a lower cost.

​An Airline's Flight Is About to Take Off

An Airline's Flight Is About to Take Off