Question

Suppose the costs (in cents) per passenger-mile of operating a jumbo jet on flights of 1200 and 2,500 miles with 250, 300, and 350 passengers aboard is:


a. What is the marginal cost of one more passenger on a 1,200 mile flight if there are between 250 and 300 passengers?
b. If the number of passengers is 300 and the flight is between 1,200 and 2,500 miles, what is the marginal cost of flying an additional mile?
c. What would the fare on a 2,500 mile flight have to be for a company to cover the operatingcosts?


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  • CreatedSeptember 27, 2014
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