If an Airport Decides to Expand by Building an Additional

question 210

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, what would the expansion provide to the airlines?

• A)Economies of scale
• B)Diseconomies of scale
• C)Higher average costs but lower total costs
• D)Higher marginal costs but lower total costs

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Definitions:

Steel Workers

Individuals involved in the production and processing of steel, often working in mills and foundries.

Supply

The total amount of a good or service available for purchase at any given price.

Suppliers

Entities that provide goods or services to consumers or other businesses in the market.

Supply

The complete quantity of a particular product or service accessible to buyers.