Are the wages of the pilots marginal costs or sunk costs to an airline trying to decide whether to add a late-night flight from Seattle to San Francisco? They are
A) marginal costs because pilots are indispensable to the flight.
B) sunk costs if the pilots will receive no additional compensation for the flight.
C) marginal costs because they will be paid after the flight rather than before.
D) sunk costs because pilots' wage rates are determined by a contract already existing.
B) sunk costs if the pilots will receive no additional compensation for the flight.
You might also like to view...
Steps in the transmission of monetary policy are
A) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply. B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand. C) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate, and leads to an increase in aggregate demand. D) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand. E) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand.
The term "fiduciary" comes from the Latin fiducia, which means
A) value. B) gold. C) money. D) trust or confidence.
In 2015, approximately what percentage of the public debt was held by foreign individuals and institutions?
A. 41 percent B. 34 percent C. 15 percent D. 26 percent
Which of the following would not cause the market supply of cell phones to change?
A.) Telecommunications are deregulated, and anyone can produce and sell cell phones. B.) A cheaper technology for producing cell phones is developed. C.) A reduction in the demand for cell phones causes the price to fall. D.) Taxes levied on cell phone production are reduced.