Question
An airline is flying between two cities.The airline has the following costs associated with the flight: Crew=$4000 Fuel=$1000 Landing fee=$1000 Plane daily depreciation=$2000 Planedaily insurance=$2000
An airline is flying between two cities.The airline has the following costs associated with the flight:
Crew=$4000
Fuel=$1000
Landing fee=$1000
Plane daily depreciation=$2000
Planedaily insurance=$2000
The airline has an average of40passengers paying an average of$200for this flight.
Do you think the airline should be flying between the two cities?Whyorwhy not?Evaluate from a long-run perspective.Whataretheassociatedcosts?
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
