An airline is considering adding a flight from Chicago to Sioux Falls. Total cost of the flight is $5,500 . Variable cost is $2,000 . Revenue from the flight is expected to be $3,000 . Should the flight be added?
a. No, the revenue ($3,000 . is below the cost ($5,500.)
b. No, the addition to profit is very small and not worth the effort.
c. Yes, profit increases by $1,000 ($3,000 ? $2,000.)
d. Yes, profit increases by $3,000.
c
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Discrimination based on gender, ethnicity, or national origin prevents firms from hiring workers whose marginal revenue product is above the market wage
a. True b. False Indicate whether the statement is true or false
Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision
a. might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. b. will help eliminate the excess supply of labor. c. may cause her workers to reduce the effort they expend at their jobs. d. All of the above are correct.
What is NOT used in the calculation of GDP (expenditure model)?
a. the value of factories built during the year b. US citizen purchases automobiles made in Germany c. the value of US corporate stocks purchased by US investors d. the value of the decline in US business inventories
Which of the following is most consistent with the basic postulate of economics: changes in incentives exert a predictable impact on human behavior?
a. Farmers produce fewer bushels of wheat in response to an increase in the price of wheat. b. People will buy more milk at a price of $3 per gallon than at $2 per gallon. c. People will buy less gas if the price of gas increases by $0.50 per gallon. d. People will consume more beef if the price increases from $1 to $2 per pound.