An airline's flight is about to take off. It has a few empty seats left aboard. If it lowers its prices, it can fill the remaining seats and fly at full capacity. What should be done?
a. Sell the additional standby seats at a discount since the marginal costs of the additional passenger are almost zero and fly at full capacity
b. Sell the additional standby seats without a discount
c. Don't offer the additional seats for any price
d. none of the above
a
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Tris is shopping for pants and belts. He has a budget of $100. The price of a pair of pants is $20 and the price of a belt is $5. His marginal utility schedules are above. What combination of pants and belts does Tris buy? Explain your answer
What will be an ideal response?
Which of the following is true of a proportional tax rate? a. It is a tax rate that remains constant as the tax base changes
b. It is a tax rate that decreases as the tax base increases. c. It is a tax rate that increases as the tax base increases. d. It is a tax rate that increases as the tax base increases and then decreases as the tax base decreases.
GDP would be a better measure of economic well-being if it included:
A. the costs of education. B. the market value of final goods. C. the total value of intermediate goods. D. the value of leisure.
What do you think is meant by the statement that "successful monetary policy requires competent people and the right institutional environment"?
What will be an ideal response?