Landing fees at many airports are based on aircraft weight However, these fees do not accurately measure the cost associated with a landing or takeoff This is because the opportunity cost of a plane using a runway primarily reflects the amount of time that other aircraft no longer have access to th...

There are two costs associated with such an approach 1 The cost of relays imposed on all aircraf ...

Landing fees at many airports are based on aircraft weight. However, these fees do not accurately measure

Question:

Landing fees at many airports are based on aircraft weight. However, these fees do not accurately measure the cost associated with a landing or takeoff. This is because the of a plane using a runway primarily reflects the amount of time that other aircraft no longer have access to the runway, and this amount of time is largely independent of the weight of a plane. If landing fees at heavily used airports are set below market- clearing levels and are based on aircraft weight, explain why there may be some significant costs associated with such an approach.

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...