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a) Draw each of the following curves for an airline on a single diagram. (5 marks) Average variable cost Average total costs Marginal costs Average
a) Draw each of the following curves for an airline on a single diagram. (5 marks) Average variable cost Average total costs Marginal costs Average fixed costs b) Using new diagrams illustrate and explain what happens to each of the curves in part a) for each of the following cases: i. An increase in the price of fuel used to operate airplanes (2.5 marks) ii. A decrease in the employment of labour associated with decreased domestic and international customers (2.5 marks) Hint: use the definitions of the different costs to assist in determining which costs will change. Clearly state any assumptions that apply to your
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