If an Airport Decides to Expand by Building an Additional

question 208

Multiple Choice

If an airport decides to expand by building an additional passenger terminal, and in doing so it lowers its average cost per airplane landing, then the expansion would provide ________ to the airlines.

• A)economies of scale
• B)diseconomies of scale
• C)higher average costs but lower total costs
• D)higher marginal costs but lower total costs

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Definitions:

Global Economy

refers to the interconnected worldwide economic activities and exchanges that transcend national borders.

China's Foreign Direct Investment

Investments made by China in business interests in other countries, in the form of ownership of firms or establishment of manufacturing or service facilities.

Insourcing

The practice of performing tasks or services within an organization, using its own employees and resources instead of outsourcing.

Global Sourcing

The practice of sourcing goods and services from the global market, across geopolitical boundaries.