An Airline Decides to Sell 5 Unoccupied Seats on a Flight

question 182

Multiple Choice

An airline decides to sell 5 unoccupied seats on a flight from California to Chicago at $300 each,which is less than its average cost per ticket of $450 each.Which of the following might have prompted this decision to sell tickets below cost?

• A) total costs
• B) average costs
• C) marginal costs
• D) traceable costs

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Definitions:

Filter Theory

Posits that people sift eligible mates according to specific criteria and thus reduce the pool of potential partners to a small number of candidates.

Potential Suitability

The possibility or capability of being appropriate or fitting for a particular purpose, role, or situation.

Education

The process of receiving or giving systematic instruction, especially at a school or university.

Values

Fundamental beliefs or standards that guide behavior and choices, reflecting what is important to an individual or society.