(Table: Maximum Willingness to Pay IV) Suppose that the marginal cost of a one-way airfare is $30. a. If the airline practices perfect price discrimination, how many customers will

(Table: Maximum Willingness to Pay IV) Suppose that the marginal cost of a one-way airfare is $30.
a. If the airline practices perfect price discrimination, how many customers will purchase one-way airfare? How much producer surplus is earned from perfect price discrimination?
b. Suppose the airline cannot price-discriminate and must sell airfare at a single price. What price does the airline charge per ticket? How many tickets are sold at this price? How much producer surplus is earned?

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