If an Airport Decides to Expand by Building an Additional

question 23

Multiple Choice

If an airport decides to expand by building an additional passenger terminal,and in doing so it lowers its average cost per aeroplane 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:

Double Counting

The fallacy of counting the same item or transaction more than once in economic calculations, leading to inaccuracies.

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, a primary indicator of economic health.

Value Added

The increase in value that a company adds to its inputs or raw materials before selling the final product, typically measured as the difference between input costs and output prices.

Government Bond

A type of investment security issued by a government to finance its expenditures, offering periodic interest payments and the return of principal at maturity.