Which of the Following Statements Are Most Likely to Be

question 157

Multiple Choice

Which of the following statements are most likely to be true for the air transportation industry?
(i) in the short run, the cost of the airplane is sunk
(ii) the opportunity cost of a flight is the variable cost
(iii) as long as total revenue exceeds fixed cost, the airlines should continue operating

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(i) and (iii) only
• D)(i), (ii) and (iii)