Suppose the Cost of Flying a 200-Seat Plane for an Airline

question 181

Multiple Choice

Suppose the cost of flying a 200-seat plane for an airline is $100,000 and there are 10 empty seats on a flight. If the marginal cost of flying a passenger is $200 and a standby passenger is willing to pay $300, the airline should

• A)sell the ticket because the marginal benefit exceeds the marginal cost.
• B)sell the ticket because the marginal benefit exceeds the average cost.
• C)not sell the ticket because the marginal benefit is less than the marginal cost.
• D)not sell the ticket because the marginal benefit is less than the average cost.

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Definitions:

Post-Thoracotomy Pain

Persistent pain that occurs after thoracic surgery.

Acute

Severe; serious.

Clinical Manifestations

Observable signs, symptoms, and syndromes that arise and are indicative of a specific disease or medical condition.

Dependence

The state of relying on or needing a substance, object, or activity for physical or psychological well-being.