Asked by
s.angela avitia
on Dec 12, 2024
Verified
If an airline company has several empty seats on a flight and the full price of an air ticket is $500 and the marginal cost per passenger is $100, then it will be profitable for the airline to
A) charge a stand-by passenger no less than the full fare of $500.
B) charge a stand-by passenger less than $100.
C) charge a stand-by passenger more than $500.
D) charge a stand-by passenger more than $100.
E) fill the seats at the last minute for any price.
Marginal Cost
The financial outlay for creating an additional unit of a product.
Stand-By Passenger
A traveler waiting without a confirmed seat assignment, hoping to board a flight due to last-minute cancellations or no-shows.
- Discover the relevance of marginal analysis in the formulation of economic decisions.
- Evaluate how policies and financial outlays influence economic decision-making.
Verified Answer
MP
Learning Objectives
- Discover the relevance of marginal analysis in the formulation of economic decisions.
- Evaluate how policies and financial outlays influence economic decision-making.