An airline has a marginal cost per passenger of $30 on a route from Boston to Detroit.
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Question:
An airline has a marginal cost per passenger of $30 on a route from Boston to Detroit. At the same time, the typical fare charged is $300. The planes that fly the route are usually full, yet the airline claims that it loses money on the route. How is this possible?
Related Book For
Business
ISBN: 978-0324829556
10th Edition
Authors: Willian M Pride, Robert J. Hughes, Jack R Kapoor
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