7. An airline has a marginal cost per passenger of $30 on a route from Boston to...

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7. An airline has a marginal cost per passenger of

$30 on a route from Boston to Detroit. At the same time, the typical fare charged is $300. The planes that fly the route are usually full, yet the airline claims that it loses money on the route. How is this possible?

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Principles Of Microeconomics

ISBN: 9780393679199

3rd Edition

Authors: Dirk Mateer, Lee Coppock

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