Questions
Questions

FA25: AVIA-78 Sec 01 - Intro Aviation Mgmt Midterm Exam: Part II (In Class)**

Single choice

Which of the following best illustrates demand-based pricing in the aviation industry?

Options
A.An aircraft manufacturer setting prices based solely on production costs and profit margin.
B.An airline increasing ticket prices during peak holiday travel seasons when most flights are full.
C.A private jet charter company charging the same hourly rate year-round regardless of demand.
D.A flight school offering a flat tuition rate for all students, no matter when they enroll.
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Step-by-Step Analysis
To approach this question, I’ll evaluate what demand-based pricing means in practical terms within the aviation sector. Option 1 states that an aircraft manufacturer sets prices solely on production costs and profit margins. This describes a cost-plus pricing approach, which is driven b......Login to view full explanation

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