One reason why airlines charge business travelers and leisure travelers different prices is
A) business travelers fly according to schedules that are planned months in advance. Many leisure travelers buy their tickets at the last minute.
B) business travelers fly more often than most leisure travelers. As a result, their employers are able to bargain with airlines for lower fares than leisure travelers pay.
C) business travelers often have inflexible schedules and have to travel on a particular day. The opposite is true for leisure travelers.
D) business travelers usually travel alone. Leisure travelers often fly with friends and family members; therefore, they have a more inelastic demand for airline tickets than business travelers.
C
You might also like to view...
Control of the nation's quantity of money is handled by
A) Congress. B) the Federal Reserve System. C) the President of the United States. D) Congress, the Federal Reserve System, and all commercial banks.
Skeptics of government policy to reduce taxes on saving argue that it would primarily benefit the rich
a. True b. False Indicate whether the statement is true or false
Which of the following accurately shows the difference between (A) those who criticize advertising and (B) those who support advertising?
a. (A) claims ads provide misleading information; (B) claims ads provide helpful information. b. (A) claims ads promotes substitutes; (B) claims ads reduce substitutes. c. (A) claims ads reduce prices; (B) claims ads increase prices. d. (A) claims ads enhance consumer tastes; (B) claims ads alter consumer tastes.
Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he hires a fourth driver, he can schedule breaks and lunch hours so that all three vans are in constant use, allowing him to increase deliveries per day from 60 to 75. It will cost an additional $75 per day to hire the fourth driver. The marginal cost per delivery of increasing output beyond 60 deliveries per day:
A. is $75. B. cannot be calculated without knowing Owen's total fixed costs. C. is $0 since Owen does not have to purchase another van. D. is $5.