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:

Entrepreneurial Hobby

An activity or interest pursued outside one's regular occupation that involves creating or managing ventures with a growth and profit potential.

B2B

Business-to-business, a type of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and retailer.

Small Business Sector

The segment of the economy composed of independently owned companies that have fewer employees and lower revenue than larger corporations.

Traditional Distributor

A business that purchases products from manufacturers and sells them to retailers or end consumers, typically without significant alteration.