Assignment Task:
(Oligopoly Question) Kashian Airline has determined that the price elasticity of demand for two customer segments (a Customer seeking First Class seats on an airplane has price elasticity of demand 1s -1.5 while Coach seats have a price elasticity of demand is -2.25. Based on their expectations of profitability, Kashian realizes the Marginal Cost of the flight $350. Note that the marginal cost of a Coach Seat and a First Class seat are about the same (in effect, MC = $350 for each). How much should Kashian charge for its each of its products (coach and first class)?