Explain why an airline may decide to sell an air ticket to a stand-by passenger at less than the full-fare if there are empty seats on the airplane?
The decision depends on the marginal, or extra, cost of selling that person a ticket. Marginal cost will include such things as the cost of writing and processing the ticket, the food and beverages the person will consume, and the extra fuel that will be needed. If those costs are less than the cost of a full-fare ticket then it will be profitable for the airline to charge the stand-by passenger a price that is greater than or equal to the sum of the marginal costs.
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If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the monetary base is
A) $480 billion. B) $480.8 billion. C) $80 billion. D) $80.8 billion.
Trade makes costs
a. higher and reduces the variety of goods and services available. b. higher but raises the variety of goods and services available. c. lower but reduces the variety of goods and services available. d. lower and raises the variety of goods and services available.
Patents are a barrier to entry.
Answer the following statement true (T) or false (F)
Between the second quarter of 2006 and the first quarter of 2009, the value of housing wealth decreased by about $7 trillion.
Answer the following statement true (T) or false (F)