An Airline Is Considering Adding a Flight from Chicago to Sioux

question 125

Multiple Choice

An airline is considering adding a flight from Chicago to Sioux Falls.Total cost of the flight is $5,500.Variable cost is $2,000.Revenue from the flight is expected to be $3,000.Should the flight be added?

• A)No, the revenue ($3,000) is below the cost ($5,500.) 
• B)No, the addition to profit is very small and not worth the effort.
• C)Yes, profit increases by $1,000 ($3,000 − $2,000.) 
• D)Yes, profit increases by $3,000.

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Definitions:

Self-efficacy

A belief in one's own capability to organize and execute the courses of action required to manage prospective situations.

Praise From Parents

Positive reinforcement and encouragement given by parents to their children, affecting their self-esteem and behavior.

Child's Relationship

The connections and interactions a child has with others, particularly significant caregivers, which shape their development and well-being.

Trusting Attitude

A predisposition to believe that others are reliable and have good intentions.