2. Understanding the role of fixed cost in the short run Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Total Cost Number of Passengers (Dollars per flight) 0 35,000 10 55,000 20 65,000 30 67,000 40 68,000 50 68,500 60 69,000 70 70,000 80 70,500 90 70,800 100 70,900 Given the information presented in the previous table, the fixed cost to cperate this flight is . At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for the duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Price Quantity Demanded (Dollars per ticket) (Tickets per flight) 800 0 600 20 450 80 150 100 Complete the following table by computing total revenue, total cost, variable cost, and profit for each of the prices listed. (Hint: Be sure to enter a minus sign before the number if the numeric value of an entry is negative.) Price Total Revenue Total Cost Variable Cost Profit (Dollars per ticket) TR) (TC) (VC) (TR-TC) (Dollars) (Dollars) (Dollars) (Dollars) 800 0 35,000 0 -35,000 600 450 150 Given this information, the profit-maximizing price is * per ticket, and seats out of 100 will be purchased. In this case, which of the following statements are true about the market at this price-quantity combination? Check all that apply. O Profit is positive. O Price is less than average total cost. The airline is operating at too big a loss and should, therefore, cancel this flight. O Total revenue is greater than variable cost. If fixed cost increases to $53,500, does this change the production decision of the airline in the short run? O Yes O No True or False: It is always more profitable to operate a full flight at a lower cost per ticket than a partially full flight at a higher price. O True O False