Read the following and then thoughtfully discuss the questions.
Often airline frequent flier programs upgrade high volume passengers one, three, or five days in advance. Discuss
•What are the differential costs of this practice?
•What are the opportunity costs?
•What are the opportunity costs of not doing this?
•Would it be wise to sell a seat to a passenger walking up to the gate at the last minute a ticket based on the variable cost? Why or why not?