a.What is the profit-maximizing price EA will charge?How many people will be on each flight?What is EA's profit for each flight? To find the profit-maximizing price,first find the demand curve in inverse form P=500-Q We know that the marginal revenue curve for a linear demand curve will have twice the slope,or MR=5002Q. The marginal cost ofcarrying one more passenger is $100,so MC=100.Setting marginal revenue equal to marginal cost to determine the profit-maximizing quantity,we have: 500-2Q=100,or Q=200 people per flight. Substituting Qequals 200 into the demand equation to find the profit-maximizing price for each ticket. P=500.200.0rP=$300 Profit equals total revenue minus total costs, π=(300)(200)-30.000+(200)(100)}=S10.000 Therefore,profit is$10.000per flight. b.Elizabeth learns that the fixed costs per flight are in fact $41,000 instead of $30,000. Will she stay in this busi 1 llustrate your answer using a graph of the demand curve that EA faces,EA's average cost curve when fixed costs are $30,000,and EA's average cost curve when fixed costs are $41,000. An increase in fixed costs will not change the profit-maximizing price and quantity.If the fixed cost per flight is $41,000,EA will lose $1,000 on each flight. The r enue erated,60,000 would now be less than total,000 a. What is the profit-maximizing price EA will charge? How many people will be on each flight? What is EA’s profit for each flight? To find the profit-maximizing price, first find the demand curve in inverse form: P = 500 - Q. We know that the marginal revenue curve for a linear demand curve will have twice the slope, or MR = 500 - 2Q. The marginal cost of carrying one more passenger is $100, so MC = 100. Setting marginal revenue equal to marginal cost to determine the profit-maximizing quantity, we have: 500 - 2Q = 100, or Q = 200 people per flight. Substituting Q equals 200 into the demand equation to find the profit-maximizing price for each ticket, P = 500 - 200, or P = $300. Profit equals total revenue minus total costs,  = (300)(200) - {30,000 + (200)(100)} = $10,000. Therefore, profit is $10,000 per flight. b. Elizabeth learns that the fixed costs per flight are in fact $41,000 instead of $30,000. Will she stay in this business long? Illustrate your answer using a graph of the demand curve that EA faces, EA’s average cost curve when fixed costs are $30,000, and EA’s average cost curve when fixed costs are $41,000. An increase in fixed costs will not change the profit-maximizing price and quantity. If the fixed cost per flight is $41,000, EA will lose $1,000 on each flight. The revenue generated, $60,000, would now be less than total cost, $61,000. Elizabeth would shut down as soon as the fixed cost of $41,000 came due