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.
Answer: D
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During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?
A. The opportunity cost of attending college is higher when unemployment is high. B. The benefit of attending college is lower because college graduates are less likely to find jobs. C. The opportunity cost of attending college is lower when unemployment is high. D. Students go to college even when the net benefit is negative.
Contractionary monetary policy should initially change gross investment by ________.
A. enough to reach full employment B. more than necessary to reach full employment C. an amount determined by the money multiplier D. less than necessary to reach full employment
As the amount of time a consumer has to adjust to a change in price increases, so does the price elasticity of demand for a good
Indicate whether the statement is true or false
Evidence of discrimination in labor markets
a. applies only to race and gender. b. is conclusively identified by large differences in average wages rates between men and women. c. is difficult to verify by reference to differences in average wage rates. d. is more easily identified on the basis of race than gender.