The cost of underestimating the demand is considered a revenue loss that arises due to cancellation of flight costing $134. Hence, cost of underetimating the demand is

.
The cost of overestimating the demand is known as rewards. For example, free round trip ticket worth $263. Hence, the cost of overestimating the demand is

.

The z-score that yields a p-value of 0.3375 is -0.4193.
Thus, super discount airlines should overbook the flight by 35 + (-0.4193 x 24) = 35 - 10.0632 = 24.9368 = 25 seats.
Therefore, super discount airlines should overbook the flight by 25 seats.
Answer:
(B) more than one person can consume the same unit of the good at the same time.
Explanation:
A service is rival in consumption if the same unit of the good cannot be consumed by more than one person at the same time and nonrival in consumption if more than one person can consume the same unit of the good at the same time.
Answer:
C. subtracting the competitive level producer surplus from the producer surplus associated with less output
Explanation:
A deadweight loss refers to a cost to society created as a result of market inefficiency. Market inefficiency occurs when supply and demand are out of equilibrium. It is also known as excess burden.
Deadweight loss is also created due to taxes as they prevent people from purchasing things that they would otherwise as the final price of the product increases.
The deadweight loss associated with output less than the competitive level can be determined by subtracting the competitive level producer surplus from the producer surplus associated with less output
Lender
which is usually the bank