DASH Airlines Is Considering the Addition of a Flight from Red

question 79

Multiple Choice

DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100, of which $800 are fixed costs already incurred. Expected revenues from the flight are $600. DASH should

• A)not add this flight, because only flights that cover their full costs are profitable.
• B)not add this flight, because it is not profitable at the margin.
• C)add this flight, because marginal revenue exceeds marginal costs and total revenue exceeds total variable cost.
• D)not add this flight, because total costs exceed total revenue.

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Definitions:

Piaget

A Swiss psychologist known for his pioneering work in child development, particularly for his theory of cognitive development.

Blank Slate

A metaphorical term referring to the mind in its presumed original state unaffected by outside influences.

Accommodation

In cognitive psychology, the process of modifying existing mental frameworks to incorporate new information.

Incorporating New Experiences

The process of integrating new and novel stimuli or events into one's existing cognitive structures or knowledge base.