In order to maximize its profit in the short run, an airline should offer an additional flight whenever
a. its marginal revenue exceeds its sunk costs
b. it marginal revenue exceeds its average total cost
c. the average seat price exceeds its sunk costs
d. the average seat price exceeds its average total cost
e. the additional revenue exceeds the additional costs
E
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Economics studies the consequences of
A) choices made by individuals. B) choices made by businesses. C) choices made by governments. D) choices made by society. E) choices made by the entire planet earth.
How will an increase in federal government spending without an increase in taxes affect real GDP and the price level in the short run in a closed economy and in an open economy?
What will be an ideal response?
What are the two possible causes of market failure?
The Friedman natural rate theory is built upon
A) rational expectations. B) adaptive expectations. C) flexible wages and prices. D) the assumption of one Phillips curve. E) b and c