Air Cargo) An air cargo company must decide how to sell its capacity. It could sell a portion of its 1 answer below »


Air Cargo) An air burden gang must run how to retail its compatability. It could retail a fraction of its compatability delay long-term curtails. A long-term curtail specifies that the buyer (the air burden gang’s customer) get donation a established totality of burden room at a established compensation. The long-term curtail scold is currently $1,875 per gauge item of room. If long-term curtails are not attested, then the gang can retail its room on the imperfection chaffer. The imperfection chaffer compensation is sublimable, but the expected forthcoming imperfection compensation is environing $2,100. In attention, imperfection chaffer claim is sublimable: Sometimes the gang can invent customers; other times it cannot on a short-term basis. Let’s revolve a local begin on a local date. The gang’s compatability is 58 items. Furthermore, the gang expects that imperfection chaffer claim is normally select delay medium 65 and gauge gap 45. On middle, it costs the gang $330 in fuel, handling, and defence to fly a item of burden.

a. Suppose the gang relied exclusively on the imperfection chaffer; that is, it attested no longterm curtails. What would be the gang’s expected use? [18.2]

b. Suppose the gang relied exclusively on long-term curtails. What would be the gang’s expected use? [18.2]

c. Suppose the gang is geting to use twain the long-term and the imperfection chaffers. How multifarious items of compatability should the gang retail delay long-term curtails to maximize fruits? [18.2]

d. Suppose the gang is geting to use twain the long-term and the imperfection chaffers. How multifarious items of compatability should the gang retail delay long-term curtails to maximize use? [18.2]