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:

Mental Processes

Internal cognitive operations that involve thinking, reasoning, problem-solving, and planning, among other intellectual activities.

Interference

the process by which other memories or information disrupt the storage or retrieval of specific memories.

Behavioural Psychologists

Professionals who study and analyze how human actions are affected by the environment and external stimuli.

Internal Thought Processes

The mental operations and mechanisms through which individuals perceive, interpret, and organize their internal and external world.