Marginal Airlines. Marginal Airlines runs 10 flights per day at a total cost of $50,000, including $30,000
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Marginal Airlines. Marginal Airlines runs 10 flights per day at a total cost of $50,000, including $30,000 in fixed costs for airport fees and the reservation system and $20,000 for flight crews and food service.
a. If an 11th flight would have 25 passengers, each paying $100, would it be sensible to run the flight?
b. If the 11th flight would have only 15 passengers, would it be sensible to run the flight?
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Related Book For 
Macroeconomics Principles Applications And Tools
ISBN: 123885
8th Edition
Authors: Arthur OSullivan ,Steven Sheffrin ,Stephen Perez
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