An airline can increase its profit by offering standby customers an unsold seat at a substantial discount just before takeoff because
a. additional passengers are needed to balance the load.
b. the marginal cost of additional passengers is very small.
c. additional passengers add little to fixed costs.
d. such passengers add more to profits than do those with reserved seats.
B
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Figure 34-9
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In Figure 34-9, Pestoland at price OA
A. is importing MN pasta from Pastaland. B. is exporting MN pasta to Pastaland. C. is exporting XY pasta to Pastaland. D. is exporting OZ pasta to Pastaland.
When tastes are risk loving, a person will always choose a gamble that is riskier over one that is less risky.
Answer the following statement true (T) or false (F)
Which of the following is an example of a negative externality?
a. Planting flowers in your front yard. b. Talking loudly when others are trying to study economics. c. People donating money to charity. d. The price of bread increases. e. Accidentally pushing someone as you try to cross the street.
Frictional unemployment is the result of
a. not enough jobs for everyone to be employed. b. unemployed workers' skills not matching those needed for the available jobs. c. a decline in the demand for labor, such as during a recession. d. imperfect information and temporary periods of unemployment while workers are changing jobs.