The Wall Street Journal reports that Southwest Airlines is reporting increases in pilot fatigue as flights have
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Question:
- The Wall Street Journal reports that Southwest Airlines is reporting increases in pilot fatigue as flights have increased this year. The law of diminishing returns _____ to companies like Southwest because____________.
A. Does not apply; of economies of scale.
B. Does not apply; it has the option of engaging in downsizing.
C. Applies; fixed costs do not change as production levels change.
D. Applies; an increase in any variable input will eventually lead to a decline in the output from that input.
E. A and B only.
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