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pickupchik [31]
3 years ago
13

An airline has a marginal cost per passenger of $20 on a route from Minneapolis to Dallas. At the same time, the typical fare ch

arged is $300. The planes that fly the route are usually full, yet the airline claims it loses money on the route. This loss may occur because
Business
1 answer:
luda_lava [24]3 years ago
3 0

Answer:

The fixed costs are too high. The marginal cost generally represents variable costs and they might be very low, but if the fixed costs are simply too high, they will need to increase the price of the plane tickets in order to break even. The break even formula is calculated by dividing total fixed costs by marginal revenue (selling price - variable costs).

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Suppose the marginal cost curve in the short run first decreases and then increases. If marginal cost is decreasing, _____ must
In-s [12.5K]

Answer: D. marginal product; increasing; average variable cost; decreasing

Explanation:

The Marginal product curve is hump-shaped and the marginal cost curve is U-shaped because these two move in opposite directions to each other.

If the marginal cost is decreasing therefore, the marginal product must be increasing. If the marginal cost is decreasing and the marginal product is increasing, average variable cost will have to fall because every additional unit produced incurs less cost so the average has to fall as well.

6 0
3 years ago
In the long run, when marginal cost is above average total cost, the average total cost curve exhibits
serg [7]
The answer is B



Have a good day
6 0
3 years ago
Under which conditions, according to the Porter five-forces model, can a supplier group gain power?
Tasya [4]

Answer:

b. When there is a lack of importance of the buyer to the supplier group

Explanation:

According to Porter there are five forces that can cause rivalry in a production industry. These are supplier power, threat of new entrants, buyer power, threat of substitutes, and degree of rivalry.

Supplier power is when suppliers are able to benefit from the producers by increasing prices of inputs and gaining some industry profit. Since suppliers supply input and labour to the producer they have a greater control of there is lack of importance of the buyer to the supplier group.

This means that the supplier group has more control on price and quality it supplies to the buyer with buyer having little choice but to buy.

If however buyer is more important to the supplier it means they can control price and quality of inputs

8 0
3 years ago
N
ankoles [38]

Answer:

Stocks is the type of investments that offers both capital gains and interest income.

4 0
3 years ago
You are writing a report about new regulations that affect your company. Your primary audience of company executives is very bus
german

Answer:

D. Break your report into modules and put highly detailed information in an appendix.

Explanation:

According to the question above, it is observed that when writing the report on new regulations that affect your company, the main objective is to reach the executives, who are busy and will read your report quickly, so the ideal is that the report is written with highly detailed information in an appendix and the report is divided into modules, with the aim of executives to access the most important information and the parts that most interest them more quickly.

Therefore, the report must be complete and contain all information about the subject in question, as it should also reach members of the secondary and tertiary public, they will probably read more slowly and carefully.

3 0
3 years ago
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