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An airline is flying between two cities. The airline has the following costs associated with the flight: Crew-$4,000 Plane daily depreciation-$2,000 Fuel-1,000 Plane daily insurance-2,000

An airline is flying between two cities. The airline has the following costs associated with the flight:

Crew-$4,000

Plane daily depreciation-$2,000

Fuel-1,000

Plane daily insurance-2,000

Landing fee-1,000

The airline has an average of 40 passengers paying an average of $200 for this flight.

Do you think the airline should be flying between the two cities? Evaluate from a short-run perspective.

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