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An airline is flying between two cities.The airline has the following costs associated with the flight: Crew $4000 Plane daily depreciation $2000 Fuel 1000 Plane

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

Crew $4000 Plane daily depreciation $2000

Fuel 1000 Plane daily insurance 2000

Landing fee 1000

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 profit

maximization perspective. Remembers marks are allocated based on detail explanationand please add reference

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