If an Airport Decides to Expand by Building an Additional

question 231

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, it was previously operating at

• A)minimum efficient scale.
• B)more than minimum efficient scale.
• C)less than minimum efficient scale.
• D)minimum capacity.

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Definitions:

Dollar Amount

A numerical value specifying an amount of money in terms of the dollar currency.

Phillips, Hager & North

A Canadian investment management firm, known for its mutual funds and portfolio management services.

Canadian Equity Fund

An investment fund that concentrates on equities (stocks) based in Canada.

Escalating Rate GIC

A Guaranteed Investment Certificate (GIC) where the interest rate increases at set intervals over the term of the investment.