A flight has 100 seats and a passenger fare of $130. The denied-boarding cost is $390 perdenied boarding, and the no-show rate is 0.16. Demand for this flight is extremely high; in fact,for any booking limit b<200, bookings="" will="" always="" hit="" the="" booking="" limit.="" what="" is="" the="">200,>total booking limit in this case? What is the corresponding expected net revenue? How muchdoes the airline gain from overbooking in this case?
please help !!
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