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:

Operations

The day-to-day activities required for a business to function, including production, marketing, and management.

Accrued Interest

The amount of interest that has accumulated on a debt since the last payment date but has not yet been paid.

Bond Interest Rate

The fixed or variable rate of interest paid by bond issuers on the principal amount, to bondholders until maturity.

Interest Payment Date

The specific date set for the payment of interest on a loan or bond.