If an Airport Decides to Expand by Building an Additional

question 208

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, then the expansion would 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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