“There are certain fixed costs when you own a plane,” former tennis star Andre Agassi explained,

“so the more you fly it, the more economic sense it makes. . . . The first flight after I bought it, I took some friends to Palm Springs for lunch.” (Ostler, Scott, “Andre Even Flies like a Champ,” San Francisco Chronicle, February 8, 1993, C1.) Discuss whether Agassi’s analysis is reasonable.

2. Short-Run Costs