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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Definitions:

Highly Significant

A statistical term indicating that the results observed are very unlikely to have occurred by chance alone, often used for results with very low p-values.

Statistical Significance

Indicates that the probability of the observed results occurring under the null hypothesis is low, suggesting the results are not due to random chance.

Probability

A measure of the chance or likelihood that a certain event will occur, often quantified as a fraction or percentage.

Variance

A statistical measure of the dispersion representing how much the values in a data set differ from the mean of the data set.