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:

Lives in Poverty

The condition of individuals or families whose income falls below the necessary level to maintain basic living conditions.

Official Poverty Line

A government-determined threshold indicating the minimum level of income required to sustain a basic level of living.

Early 1960s

A period characterized by significant social, political, and cultural changes around the world, often remembered for movements advocating for civil rights and freedom.

Hispanic Persons

Individuals originating from Spanish-speaking countries, especially those in Latin America, and often pertaining to a demographic group in the United States.