If an Airline Company Has Several Empty Seats on a Flight

question 215

Multiple Choice

If an airline company has several empty seats on a flight and the full price of an air ticket is $500 and the marginal cost per passenger is $100, then it will be profitable for the airline to

• A) charge a stand-by passenger no less than the full fare of $500.
• B) charge a stand-by passenger less than $100.
• C) charge a stand-by passenger more than $500.
• D) charge a stand-by passenger more than $100.
• E) fill the seats at the last minute for any price.

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Definitions:

Engage

To actively participate or become involved in an activity or interaction.

Compel

To force someone to do something through pressure, threats, or coercion.

Negotiation

A process where two or more parties discuss their differences and try to reach a mutually acceptable agreement.

Breakdowns

Failures or collapses in systems, relationships, or communications that result in disruption or dysfunction.