Answered

Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Get immediate and reliable solutions to your questions from a knowledgeable community of professionals on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

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

Sagot :

jepessoa

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).

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.